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(KANSAS CITY, Mo.) April 30, 2013 – Early-stage business owners’ confidence is climbing, according to the first-quarter 2013 Kauffman/LegalZoom Startup Confidence Index, released today by the Ewing Marion Kauffman Foundation and LegalZoom.

Eighty-four percent of entrepreneurs said they are confident or very confident in their companies’ prospects for profitability in the next 12 months, which is the highest confidence level since the survey launched early last year and reflects a 1 percent increase over the fourth-quarter 2012 survey. Furthermore, confidence levels of the youngest entrepreneurs – those 18 to 30 years old – started to rebound, as 96 percent reported they were confident or very confident that their businesses’ profitability will increase in the year ahead, a 3 percent jump over fourth quarter 2012.

“The findings of this survey from quarter to quarter provide an important gauge for entrepreneur sentiment, which plays a significant role in their business decisions,” said Dane Stangler, director of research and policy at the Kauffman Foundation. “This also is a way to give entrepreneurs, who are as diverse as their companies, a collective voice.”

Confidence levels among other age groups fell as the entrepreneurs’ ages increased. Nevertheless, even entrepreneurs aged 61 and older – the oldest category – expressed 73 percent confidence in 2013 profitability.

“These reports continue to benchmark entrepreneurial confidence across the country,” said John Suh, CEO of LegalZoom. “They also provide a more granular feel as to how an entrepreneur’s experience with consumer demand and perceived outlook on the economy may impact the decision to hire.”

Despite their optimism for their own companies’ profits in the year ahead, entrepreneurs’ faith in U.S. economic growth deteriorated from fourth quarter 2012. Just 39 percent said they expected the economy to improve over the next 12 months, compared to 44 percent in the previous quarter’s survey.

The number of entrepreneurs planning to hire more employees also declined. In fourth quarter 2012, 37 percent of the respondents planned to hire. In the most recent survey, only 32 percent expected to hire more employees in the next 12 months.

Entrepreneurs’ outlook for consumer demand dipped with 44 percent expecting an increase in customer demand, down from 45 percent in the previous survey.

The Kauffman Foundation sponsors the Startup Confidence Index surveys in conjunction with LegalZoom, a leading national provider of online legal solutions and legal plans to young companies.

The findings are based on 1,650 responses to a nationwide, February 2013 survey distributed via email to LegalZoom customers who formed their entities within the last 12 months. The Index is conducted quarterly to gauge entrepreneurial confidence.

After three months of tireless work, the HCC Newspring Business Plan Competition contestants saw the first fruits of their labor as winners were announced at HCC’s Spring Branch Campus April 26. Twenty-five teams worked with advisers to craft their business models and plans for expansion. Ultimately, five teams were selected as finalists, winning large cash prizes to turn their dreams into realities.

“This is a unique partnership that illustrates what the private and education sectors can accomplish working together, helping young companies get started or grow.” said Jack Barry, retired CEO, author, consultant, and member of the Newspring Business Council.

In addition to being a community effort with 60 volunteer business professionals through Newspring, the competition also received generous support from the University of Phoenix, Wallis State Bank, Amegy Bank, David Regenbaum, Constant Contact, Richard Tyler International, Inc., Houston West Chamber of Commerce, Small Business Today Magazine and the HCC Foundation. 

“Bringing education, experienced entrepreneurs for mentorship and the might of Houston’s entrepreneurial eco-system together to empower these aspiring and existing small business owners is an example of how we keep Houston working.”  Dr. Zachary Hodges, President, HCC Northwest.

Newspring, a faith-based 501(c)(3) organization aimed at the economic development of the Spring Branch area of Houston, founded in 2006 by Robert Westheimer, has organized the competition for six years working with HCC. Newspring’s goal is to foster new and existing businesses in Spring Branch. They are able to do this through a large team of business leaders from Houston who serve as mentors and advisers to students who enter the business plan competition.

“It is exciting to see this competition grow and mature. This year’s contestants were a pleasure to mentor and we are excited about their business prospects.” said Westheimer. 

The first place winner of this year’s business plan competition and $12,000 is Kevin Doffing of Sam’s Safety Equipment. Doffing took over Sam’s Safety Equipment from his father in 2009 and has transformed it from a single shop in northwest Houston into an expanding brand with multiple locations. Sam’s Safety Equipment provides Personal Protective Equipment and Red Wing boots to oil and gas workers. His team advisers were John Hartman and John Krebs.

The second place prize winner is Elaine Mau of Urban Leaf, taking home $8,000 followed by Joe Kappil representing Lone Star RSD in third, earning him $4,000. Honorable mention was given to Tim Arumburo of Blue Sky Flight Services and Robert Delossantos of Sky High Party Rentals, each receiving $1,000.

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Choose from the following sessions:

• Summer Mini 3 Week Session – 5/13/13 – 5/31/13

• Summer I 5 Week Session – 6/3/13 – 7/7/13

• Summer II 5 Week Session – 7/8/13 – 8/11/13

• Summer 10 Week Session – 6/3/13 – 8/11/13

• Summer I 8 Week Session – 5/13/13 – 7/7/13

• Summer II 8 Week Session – 6/3/13 – 7/28/13

Find out more about class schedules and enrollment information

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2012 Winner Brenda Preajean

2012 Winner: Brenda Prejean

“The prize money is great, but the experience  of moving through the competition is the biggest prize.”

“Participating in this program made me realize how much more I wanted to learn.”

-Prejean

Her business, Time for Tots, opened in Aug. 2012

2011 Winner: Desiree Worrell-Mosley

“It’s been such an amazing journey, and a real roller coaster ride. But it’s all been worth it.”

-Worrell-Mosley

Amy Asch Photography website

2010 Winner: Amy Asch

“The competition was both a great experience and a tremendous amount of work. I learned so much. The wealth of knowledge was like drinking from a fire hydrant.”

-Amy Asch

You Don’t Have to Win Prize Money to Win!

Marylyn Harris

“I competed in 2010 and didn’t place as a finalist. But the lessons I learned were invaluable to growing my business. Last year I served 2,200 veterans. Now I teach entrepreneurship and refer veterans to the competition.” 

Marylyn Harris, Women Veterans Business Center

“I entered the competition in 2012 as an existing business owner planning to launch another business. The competition helped me decide not to open the new business and the lessons learned helped me to plan and achieve growth for my existing business. I am still in touch with my competition adviser.” 

Anthony Covington, Cerberus Star Enterprises