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Study Reveals Small Business Owners Continue to Batten Down the Hatches
Published on Apr 15, 2010
Read 'Study Reveals Small Business Owners Continue to Batten Down the Hatches' at 'Time to Start Up,' the small business blog by BizFilings.
The Discover Small Business services recently released their monthly update to their Business Watch Index, which measures the confidence of 750 randomly selected small-business owners based on their answers to six questions. The index is sort of a mini pulse check of the small business environment.
In a nut-shell, March saw a decline in the confidence of small businesses, leading to the lowest levels in more than a year. 53% said they feel the economic conditions for their own businesses will get worse in the next 6 months. (Only 37% felt that way in February).
In addition, 52% also said they planned to decrease the amount spent on investing in their businesses, 27% said they would make no changes, and only 18% said they plan to increase spending.
Perhaps contributing to the overall feeling that the economy as a whole is getting worse (58% of respondents), is the fact that 72% of small business owners said they were not able to take advantage of any tax breaks for themselves or their business in 2009.
This lead to only 24% saying that they expect a refund, whereas 39% said they expect to owe money for their 2009 return.
So even though we are beginning to see some sectors of the economy turn-around, it may be a while before this reaches the small business community as a whole.
As a small business owner, is your confidence rising or falling?