Small business optimism
by August 5, 2009 9:17 am 46 views
A new survey from Administaff shows that 58% of small business owners expect an economic recovery in 2010, with 41% expecting and increase in sales in the last half of 2009.
“Throughout America’s history, the entrepreneurial spirit has overcome obstacles and capitalized on opportunities, and our current economic setting is no exception,” Paul Sarvadi, Administaff’s chairman and CEO, said in this statement. “Small and medium-sized businesses are battling through the challenges of the recession and appear to be preparing for a recovery in 2010.”
The Administaff Business Confidence Survey released Aug. 3 also shows that 14% of small business owners surveyed believe economic recovery will happen in the last half of 2009, and 14% suggest a rebound won’t arrive until 2011.
SURVEY FINDINGS
• The economy was listed by 83% of business owners as their biggest concern for 2009, followed by 53% citing government healthcare reform, 44% listing controlling operating costs and 33% specifying rising healthcare costs.
• As to their concerns for 2010, survey participants expressed a 55% tie vote for being “very concerned” about both potential tax increases and the effect of government expansion on business, and 50% listed the Federal deficit.
• For the remainder of 2009, 41% expect a sales increase, 35% predict it will stay the same, while only 15% anticipate decreasing sales.
• Also, 60% of owners and managers of small and medium-sized businesses said that they are either meeting or exceeding their 2009 performance plans, with the remaining 40% reporting that they are doing worse than expected.
• In the survey conducted in late July, 60% of participants said they are maintaining current staffing levels, while 23% are adding new positions, up from the 18% in the survey conducted three months ago. Layoffs were named by 16% as a current management strategy versus 19% in May.
• Of the 57% citing current plans to cut operating expenses from current levels in the remainder of 2009, 70% said they would do so by limiting travel and/or entertainment, 60% named negotiating with vendors, and more than 53% each specified postponing or cutting capital investments and/or canceling or delaying projects.