According to Discover Small Business Watch, there is again a drop in the confidence levels on economy by small business owners. The small business owners have rated the current economic condition as poor and are expecting that it would get worse. There was also drop in index to 83 in July from 86.1 in June. The index has been below 83 from the starting of the year.
The survey has collected Small Business Owners opinions in different aspects.
About Country’s Economy
About 58 percent of the small business owners have rated the economy as a poor one during July. This has increased from 51 percent in June. About 7 percent of them have rated that the economy is excellent or good which has dropped from 12 percent in June.
About 75 percent of the small business owners strongly believe that the economy will slip into another recession before their is full recovery. About 15 percent of them are not expecting another recession and about just 10 percent of them are unsure.
Small Business Owners Have Disapproved the Way the Government has Handled the Economy
About 60 percent of the small business owners have strongly disapproved the way the government is handling the economy which has increased from 52 percent in 2009. About just 39 percent have strongly approved which has decreased from 47 percent in July.
Increase in Number of Small Business Owners Taking Home Less Pay
Around 73 percent of small business owners who were surveyed reported that the current economy has resulted in taking home less money in July which has increased from 69 percent in July of 2009.
- About 45 percent of small business owners have expressed that the economic conditions for their business were worst in July which has increased from 43 percent in June. About 30 percent of the respondents expressed that the economic conditions were better. About 22 percent of them expressed that the economic conditions were same and only 3 percent of the small businesses were not sure.
- There was decline in temporary cash flow issues in July. In the past 90 days, about 49 percent of small business owners expressed that their businesses have not encountered any temporary cash flow issues which caused them to hold paying some bills. This has increased from 45 percent in June. About 47 percent of the small business owners have experienced cash flow issues which has decreased from 51 percent from June.
- About 28 percent of small business owners have expressed that they will increase spending on developing their business over the coming 6 month which is up from 25 percent in June.
- This year, 97 percent of the small business owners have not applied for the stimulus funded SBA loans.