Press Release
April 28, 2003

Click here to download Brooklyn Business Survey Results, Executive Summary.  (Requires Adobe Acrobat Reader®.Download free here.)

Click here to download Brooklyn Business Survey Results, Full Report.  (Requires Adobe Acrobat Reader®.Download free here.)

Brooklyn Business Survey

Purpose

In September 2002, the Brooklyn Chamber of Commerce was commissioned to conduct a study of the Brooklyn business community.  The purpose of this study was to obtain a measurement of the impact the September 11, 2001, attack on the World Trade Center had on the Brooklyn business environment, and to identify current obstacles to survival and growth these businesses face.  As such, the survey represents the most comprehensive study of the Brooklyn business community undertaken in the past 20 - 25 years.

Profile of Responses

The six-page survey was mailed to over 27,000 Brooklyn-based businesses employing three or more employees.  The overall response rate was 4% (1,085 responses), a rate at least double the industry standard of 2% generally achieved from a study of this type.  The response rate was 10% for the BCC Members and 3.4% for non-members.  A cross-section of industries and business types were represented, with retailers, manufacturing firms, health care companies and construction firms representing the top four sectors that responded.

Lasting Impact of 9/11

• About 71% of the total responding businesses reported that they had experienced a decline in revenue during the 12-months following 9/11. 
• Of those businesses that reported a decline, 17% reported the decline was 50% or more of their annual revenue.
• Roughly 30% of responding companies expect their revenue to continue to decline this year, while another 34% say revenue will probably stay about the same as last year.
• Among those businesses that reported a decline in revenue, 47% (365 companies) indicated they had to layoff employees after the tragedy.  Only 12% reported that they have since re-hired any of these former employees. 

Liability Insurance

• When asked to rate various obstacles to business growth, 70.5% of responding companies cited “cost of liability insurance” as a “problem or a severe problem.”
• Of the 224 companies that indicated they could relocate from the borough, 40.2% rated “cost of liability insurance” as the #1 reason.

Health Insurance

• When asked to rate various obstacles to business growth, 67.3% of responding companies cited “increased cost of providing health insurance for workers” as a “problem or severe problem.”  
• Only 47% of the responding businesses indicated that they provide health insurance coverage for their employees.  The highest levels of coverage occurred amongst older/mature businesses (10+ years in existence).
• When asked if the company would be interested in offering employees an “affordable, low-cost health insurance plan specifically designed for Brooklyn small businesses,” 60.7% indicated “yes.”

Workforce Development

• When asked to rate various obstacles to business growth, 48.2% of responding companies cited “finding/hiring reliable workers” as a “problem or severe problem.”
• When asked to rate various obstacles to business growth, 46.8% of responding companies cited “finding/hiring qualified workers” as a “problem or severe problem.”
• Almost 1/3 of total respondents (342 businesses) indicated that they were very interested in a wage subsidy program that provided subsidies to prevent layoffs or to hire new workers.

Energy

• When asked to rate various obstacles to business growth, 54.1% of responding companies cited “cost of energy (gas, electric, heating, oil)” as a “problem or severe problem.”
• Of the 224 companies that indicated they could relocate from the borough, 25.3 % rated energy a potential reason for relocation.