Silicon Valley Executives Say Kerry Better Than Bush for Business; Santa Clara University Survey Finds Flattened Expectations May Be Influencing Choice

Business Wire, Oct 29, 2004

SANTA CLARA, Calif. -- Silicon Valley business leaders think a John Kerry presidency would benefit the Silicon Valley economy more than continuing with George W. Bush, according to the Santa Clara University Business Index (SCUBI) survey of area executives and managers, taken last week by Santa Clara University business faculty.

Although the Kerry pick contradicts conventional wisdom that business benefits from Republican administrations, says the survey team, the preference may reflect the continued downward trend of the regional index of business sentiment, which this month hit its lowest mark of the last 12 months. The index measures business expectations in the current climate as well as prospects in the next six months.

"Lack of job creation locally or the fear of a burgeoning federal deficit may be feeding disappointment in the president and his handling of the economy," said Mario Belotti, W.M. Keck professor of economics at SCU's Leavey School of Business. "Although it's clear that John Kerry's economic platform contains policies that could be detrimental to Silicon Valley's economy, such as an increase in dividend and capital gains taxes, apparently much of the region's business leadership is leaning with the rest of California toward the Democratic ticket."

Since February 2002, the SCU Business Index has asked managers and executives in a wide range of businesses in Silicon Valley to assess their business prospects for the next six months, and compared to the past six months, as well as current and future availability of jobs in their companies. The business index is managed for the Leavey School of Business by The Survey Company. Complete SCU Business Index results and methodology for October and earlier months can be found at www.surveycompany.com/SCUBI/SVOutlook.html.> Media: Professor of Economics Mario Belotti is available to comment on survey results and on business conditions in Silicon Valley. Call 408-554-4341 or 408-554-5125 to arrange an interview.

About the Santa Clara University Business Index survey

This monthly business indicator, the only one of its kind for the Silicon Valley region, is a composite index that every month tracks business conditions in Silicon Valley companies and their markets, as well as trends in job availability in the region, by polling the region's executives and managers.

About the Leavey School of Business

The Leavey School of Business at Santa Clara University began in 1926, and was one of the first business schools in the country to receive national accreditation. Its undergraduate business program is recognized as one of the best in California, and its MBA program is ranked 10th in the nation among part-time graduate programs for working professionals. More than 80 percent of its 1,100 MBA student body are working professionals in the Bay Area.

About Santa Clara University

Santa Clara University, a comprehensive Jesuit, Catholic university located in California's Silicon Valley, offers its 8,047 students rigorous undergraduate curricula in arts and sciences, business, and engineering, plus master's and law degrees. Distinguished nationally be the second-highest graduation rate among all U.S. master's universities, California's oldest higher-education institution demonstrates faith-inspired values of ethics and social justice. More information is online at www.scu.edu.