Small-business owners’ confidence in the U.S. economy took a major hit in September, with 73% of those polled in September saying things are getting worse, reports the Discover Small Business Watch.
Only 7% of small-business owners in September thought the economy was getting better, the lowest rating in the Watch’s history, said Discover.
Q: Are economic conditions in the country getting better or worse?
| Response | % |
|---|---|
| Better | 7% |
| Worse | 73% |
| Staying the same | 15% |
| Not sure | 5% |
| Source: Sept. 2008 Discover Small Business Watch |
Business confidence had been improving over the previous two months. In August, 60% of those surveyed thought the economy was deteriorating.
Despite the overall U.S. economic woes, small businesses weren’t being immediately hit by the credit crunch. Only 29% of those surveyed said economic conditions had forced them to borrow.
But for those seeking loans, 72% found it more difficult getting money.
Other small-business owner survey findings:
- 42% said they have experienced cash flow issues over the last 90 days, unchanged from August.
- 51% believe economic conditions for their businesses are getting worse, up from 44% in August.
- 57% rated the economy as poor, up from 51% in August; 32% rated it fair, 10% rated it good and 1% rated it excellent.
- 28% plan to increase spending on business development over the next six months, unchanged from August; 44% plan to decrease spending and 26% anticipate making no changes.
“Even though we had two months of rising confidence, this month’s drop isn’t surprising given the constant stream of uninspiring news about the housing and lending markets, as well as the turmoil on Wall Street,” said Ryan Scully, director of Discover’s business credit card. “But when you look closer at the numbers, cash flow issues are steady and there is little change in their intentions for business development spending.”
Read the full press release HERE.
Other recent business news…
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- O.C. city has most valuable businesses in U.S.
- Small lenders say credit crisis has not hit them
- US. small-business confidence plunges in the West
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- U.S. small-business confidence plunges in the West
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Jan asa small business owner I can assest to your post. I do not think this should surprise anyone, as I think the entire community, (except those on Newport or Laguna) are feeling the pinch.