Business owners still in the economic dumps

April 22nd, 2009, 5:00 am · 1 Comment · posted by Jan Norman, small-business columnist

Owners of private companies are worried about the economy, according to three separate surveys.

The three surveys — by the National Federation of Independent Business, American Express and FedEx Office — reach different businesses, an indication that ongoing anxiety is widespread.

First up is NFIB, which has been surveying business owners for 35 years. The pessimism in April is the second highest in the survey’s history.

The NFIB index is a combination of 10 different measures, such as plans to add jobs and expectation of credit conditions. Since March 2008, expectations for higher sales and earnings have plunged. Expectation for a better economy within six months is down 22 points.

Source: NFIB

“Nothing in the survey indicated a signal that the economy is improving,” said NFIB Chief Economist William Dunkelberg.

Click here to read the entire report.

Next, from American Express OPEN Small Business Monitor:

60% are pessimistic about near-term business prospects
57% have cash flow problems
capital investment plans are at the lowest point in the survey’s eight-year history.

These survey respondents report taking steps to balance their books:

48% have instituted hiring freezes
30% aren’t taking a salary
27% have a family member working for free in the business
25% are renegotiating leases and supply contracts
16% have cut employee benefits
18% are working a second job to stay afloat during the recession

American Express did find 37% who think the current economy has business opportunities, almost all of whom said managing through the recession has made them better business owners. Here’s more.

Finally, FedEx Office’s second annual office survey finds 54% of respondents very concerned about the current economy’s impact on their businesses (up from 40% last year) and 39% moderately concerned.

However, 75% are confident they’ll still be in business a year from now, and 46% would open another business today if they could get the financing. Here’s more.

“Given the continued contraction of the marketplace, it’s not surprising that the small-business outlook has worsened over the past year,” said FedEx Office President and CEO Brian Philips. “Yet despite increased concerns, many small businesses are cautionsly optimistic and that is a positive sign that Main Street can emerge from this downturn.”

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