More (Gloomy) Numbers for Small Business Owners

Posted by: Stacy Perman on October 10, 2008

This week American Express Open Economic Pulse Small Business Monitor released a survey based on the responses of 602 small business owners across the country. If attitudes and confidence help drive the economy, according to this report, the numbers continue to deliver bad news: one in five businesses report that they risk going out of business as a result of the current economic atmosphere. While 25% of those asked said that the FDIC increase in insured bank deposits (from $100,000 to $250,000) would be helpful to them, at the same time, 45% of small business owners believe that the government’s financial rescue package will not be effective in stabilizing the economy. Concerning the economic climate, 44% of those surveyed said that they expect their businesses to be negatively impacted over the next six months while just 23% said that they expected business to grow in the same time period. Ominously, 79% reported that their sales have been on the decline.While surveys often deliver a spectrum of views, the results of this most recent OPEN data skew rather definitively — to the south.

Reader Comments

lius

October 12, 2008 01:40 PM

hello, i am looking for site where they would provide me with onlinepage for me to start selling online, they will provide the product, handles the payment and shipping and in returns, get me my profit. do know any please if yes, send me such site and if do not please ask others

AG

October 13, 2008 04:23 PM

As long as credit stays frozen, a big chunk of the small business sector will have a tough go of it.

Still, history shows that small businesses can take great advantage of hard economic times. They're more nimble than the big guys. They're more innovative than the big guys. And they have the power to build stronger customer relationships than the big guys.

www.anonymousadguy.com

Marion TD Lewis, Esq.

October 21, 2008 08:31 AM

The key short term solutions for the small business owner is flexibility, innovativeness and diversification. By Marion TD Lewis, Esq. New York. www.marionlewisesq.com

cc

October 22, 2008 10:25 PM

We need access to capital! I have been in business over 6 years and profitable. I had three lines of credit cut off in the last three weeks form a bank in the news having problems. Those problems are my problems as now I have fewer resources to buy inventory. Government is leaving us hanging and only concerning itself with the big guys! I dont need a corporate tax cut to keep employees I need protection from online sellers who dont charge taxes, like we bricks and mortars have to, and I need help-like access to capital so I dont have to cut staff to buy inventory!

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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