Most Small Business Owners Still Looking for Recovery

MAR 29, 2011 - 10:43 am

The March Discover Small Business Watch noted if the overall economy is improving in 2011, small business owners aren’t feeling it. Their outlook on the direction of the economy and the climate for their particular businesses has been in decline since January, and more than half of them have rated the economy as poor for 19 consecutive months.

The monthly barometer of economic confidence dropped to 86.5 in March, down from 90.2 in February, the report said.

March Confidence Indicators:

54% of small business owners said the U.S. economy is getting worse, up from 41%t in February and the highest since September 2010; 27% of small business owners said conditions are improving, down from 34%; and 15% said conditions are the same, down from 20% in February.

Small business owners’ outlook for their own businesses over the next six months also declined: 42% say conditions are getting worse, up from 40% in February; 30% say conditions are getting better, down from 33%; and 24% say conditions are the same, down from 25%.

56% rate the current U.S. economy as poor, equal to February; 35% rate it fair, up from 32%; 6% rate it good, down from 7%; and 3% rate it excellent, unchanged from the prior month.

On the upside, fewer small business owners report temporary cash-flow issues. Over the past 90 days, 52% of small business owners reported no temporary cash flow issues that affected their ability to pay bills on time, up from 46% in February; 43% of small business owners reported having cash flow issues, down from 50%.

29% of small business owners plan to increase spending on business development in the next six month, up from 28% in February; 40% will decrease spending, down from 41% last month; and 27% say they will make no changes, down from 30% last month.

To read the March Discover Small Business Watch report in its entirety, click here.

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