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40 - Businesses develop & prosper

Goal 6 - DCC 40 - Businesses develop and prosper.

Growth of the local tax base was severely impacted by the economic downturn in FY 2008 after showing positive growth for the previous 5 years. Small businesses are a significant and growing contributor to the local economy. When surveyed in 2007, citizens’ perceptions of Albuquerque’s economic progress matched the condition at the time.

INDICATORS

LOCAL TREND:

Albuquerque’s growth in the Gross Receipts Tax (GRT) One Percent Distribution was flat (0%) in fiscal year 2008 after 5 years of positive growth, creating a negative trend. The GRT One Percent Distribution measures the growth of the tax base and therefore, the prosperity of the local economy. The contribution of small businesses to the total Albuquerque economy increased from 2000 to 2005. The change in the number of small business establishments was relatively flat, but the change in small business employment and payroll increased slightly.

NATIONAL/REGIONAL COMPARISON:

The effects of the recession in Albuquerque are similar to those of the national economy, but appeared earlier due to a slowdown in local construction activity. Establishments with fewer than 20 employees make up almost 68% of the business establishments in Albuquerque, a smaller percentage than five of six other Southwest benchmark cities. Growth in small business employment and annual payroll in Albuquerque was slightly better and is generally in the middle of the range of benchmark cities.

CITIZEN PERCEPTION:

When surveyed in 2007, Albuquerque citizens viewed business development and prosperity as important and perceived a very high level of progress in achieving this Desired Community Condition. Their perceived progress in achieving this DCC matched the conditions at the time of the survey.

Opportunity to