Small Business Watch
September 2008
Confidence Falls Sharply as 3 out of 4 Owners See National Economy Getting Worse
Economic confidence among small business owners declined sharply in September amid rising concerns about economic conditions for their businesses and a bleak vision of where the economy is headed. The Watch fell to 74.6 in September, down 12.3 points from August.
September Highlights:
42 percent of small business owners say they have experienced cash flow issues over the last 90 days, unchanged from August.
51 percent believe economic conditions for their businesses are getting worse, up from 44 percent in August.
The number of small business owners who think the U.S. economy is getting worse rose to 73 percent from 60 percent in August; only 7 percent of small business owners feel the economy is getting better, the lowest rating in the Watch’s history.
57 percent rate the economy as poor, up from 51 percent in August; 32 percent rated it fair, 10 percent rated it good and 1 percent rated it excellent.
28 percent plan to increase spending on business development over the next six months, which is unchanged from August; 44 percent plan to decrease spending and 26 percent anticipate making no changes.
Most Owners Holding Off On Borrowing, Taking Home Less Money
67 percent of small business owners say that despite the current economic climate, they have not been forced to borrow money to pay bills for their business.
73 percent say gas process are having a negative effect on their profitability.
72 percent taking home less money, up from 55 percent in February.
For those who are seeking loans, 72 percent says it is harder to borrow money right now.
