Just 12% of business owners in Connecticut think the state’s business climate is improving, according to a new survey from the Connecticut Business and Industry Association (CBIA).
Nearly 3,000 Connecticut businesses were surveyed for the report this summer.
“The survey certainly shows some signs of optimism, but these concerns about the state's competitiveness, workforce challenges and cost pressures continue to temper business expectations,” CBIA CEO Chris DiPentima said. “Connecticut's fiscal and economic challenges are compounded by ongoing instability and unpredictability at the federal level.”
A majority of business owners reported their top issue was the labor shortage — Connecticut has 77,000 job openings.
“More than three-quarters of businesses report ongoing difficulties attracting and retaining talent,” DiPentima said.
More than 90% of respondents said the cost of doing business in CT is rising. The state is one of the most expensive in the U.S. to do business, according to CNBC.
Sixty-six percent said they turned a profit in 2024, 18% broke even, and 15% lost money.
Three top state Senate Republicans said business owners were right to be concerned about the state of business in Connecticut.
“Connecticut Democrats continue to overtax working families and businesses,” Sen. Stephen Harding (R-Brookfield), Sen. Henri Martin (R-Bristol), and Sen. Heather Somers (R-Griswold) said.
“Budget gimmicks are back in style. And brace yourselves, because Democrats once again have a bullseye on your wallets next year. Senate Republicans will continue offering common sense solutions to lower the cost of living and doing business in Connecticut in order to grow our economy.”
Rob Blanchard, Gov. Ned Lamont's (D) communications director, said Lamont knows there is work to be done to support the sector but that it is also important to celebrate recent business-friendly initiatives.
“As a former small business owner, the Governor uniquely understands the economic challenges businesses face and the opportunities that exist in Connecticut. That’s why he has worked to create a skilled workforce that has helped turn our state’s economy around and decreased our unemployment below the national average," Blanchard said.
"Business leaders also identified obstacles such as access to childcare, and the Governor couldn’t agree more. This issue, which impacts many families and small businesses, was the driving force behind the creation of our historic childcare endowment. Additionally, survey responses showed great angst over the unpredictability of the federal government and the tariffs. Governor Lamont has ensured our budget is predictable and reliable for businesses, despite uncertainty from Washington, D.C.. He has amassed a rainy day fund that helps shield us from any downturn.
"However, it’s also important to the Governor that we work to continue to grow and strengthen our economy, while addressing the cost of energy, housing and health care in a way that not only attracts businesses but also allows them to expand here,” Blanchard said.
