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Is a Small-Business Recession on the Way?

June 30, 2008 RSS Feed Print

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Last month, I speculated that pessimism among small-business owners in surveys about the economy might be driven more by perception than reality. Well, the latest Discover Small Business Watch survey released today (but not yet online) does not get us much closer to figuring out the true cause of the bad feelings, but it does show that the pessimism is only deepening.

The economy is getting worse, according to 79 percent of small-business owners polled in the survey. That's up from 71 percent last month and reverses a previous decline. Even more worrisome is that while the number of businesses experiencing cash-flow problems had also fallen in May, it has increased now, from 39 percent to 42 percent.

Tags:: small business,; economy,; recession

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I own a independent clothing boutique and record shop. My business partner and I opened it over a year ago.
It has been an up hill battle from the start. Luckily we opened up the store with our own money and stayed away from the banks. My store couldn't have a better location, We are located in the middle of a college campus. I have more people coming in each day looking for jobs then buying merchandise. I am unable to pay workers and I am unable to pay myself.
When we first opened last june we use to have days where we would easily make 1,000 profit and just a year later we are happy to make 100 a day. My partner and I both work full time night jobs outside of our business and we still keep falling behind.
Electricity is sky rocketing, Gas is at a ungodly high. I see small business deterioration from my beautiful city of Richmond Virginia. I am 24 year old College graduate and entrepreneur. I was told I was living the American dream but all I want to do is escape to Europe. Why did I spend so much money on college when I am spending my days at a store that is not profitable and my nights washing dishes a restaurant that can barely pay me themselves.
Stop telling me that the recession is in my head.. its not in my head.. its in my overdrawn bank account. Its in my heating bill. It is in my collection notices. It is in my gas tank. my unpaid insurance and soon to be late rent.
Marshe' Wyche

Marshe Wyche of VA 5:12PM July 18, 2008

The pessimism of small business owners is mostly driven by their current and projected sales, orders, cash flow and revenues. My company recently polled more than 2,300 CEOs who are members of peer-to-peer groups with other business leaders. These CEOs meet once a month with each other to solve business problems in a board-of-advisors like setting. The CEOs polled said their confidence in the economy is at an all-time low, but they themselves aren’t doing all that bad:
* While more than 40 percent of the CEOs surveyed believe the U.S. economy will continue to worsen during the next 12 months, 58 percent anticipate revenue growth within their companies in the same period.
* While 17 percent of firms expect to reduce their staffs, 43 percent plan to add to their payrolls during the year ahead.
* 33 percent of all firms plan to purchase new equipment
What do these numbers mean? Business owners who take the time to problem solve and learn from other business owners tend to fare better in a down economy.
For a free 14-article report on managing small business and creating growth in a down economy, go to www.vistage.com/economy.
Tony Vignieri, Chief of Corporate Communications
Vistage International

Tony Vignieri of CA 6:32PM July 01, 2008

I am a NY certified Public Accountant with a few small business clients. My clients are feeling the gasoline and diesel price squeeze. One client went under and some we definitely feel the crunch by next tax season. The gas prices will take their tolls and if the cost is not passed down to the customer some other clients will find it hard to stay in business. Driving vans and work trucks to jobsites is becoming very hard to manage. Estimating jobs has been tricky also due to the constant flucuation in the commodities markets.
This country needs and will hit rock bottom in the near future and then we will open our eyes to bringing back manufacturing and a sense of pride and patriotism to the country that was founded by our relatives.
Importing, Immigration, Job creation, Health care and rising prices for fuel, groceries and health costs are key concerns for our politicians and society to take a very serious look at in the very near future.
Our children's lives and future depends on it.
Thanks for offering a place to speak.
Regards,
Al

AL ZUMBRUNN of NY 6:35PM June 30, 2008

Is a Small-Business Recession on the Way?

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