Small business owners believe the recession will continue through 2011, though they are confident their resilience will help them weather the storm, a new survey finds.
Nine of 10 small business owners feel the economy is currently in a recession, and 75 percent feel it will still be in a recession next year. When asked about the conditions in their state for small businesses, 32 percent feel their state is better off than the rest of the country, according to the survey by U.S. Bancorp.
Even though small business owners are facing challenging economic times, they the majority feel their businesses are financially healthy and they anticipate higher revenues in the year ahead. At the same time, over more than half of small business owners feel this is not a good time to start a business . Poor sales were cited most frequently as the biggest challenge facing their business today.
Specifically, 56 percent report revenue is in line with or higher than last year, 47 percent expect revenue to be higher next year, and 63 percent say their company is financially healthy.
“The results prove a truth we all embrace, that American small business owners are resilient and they are survivors” said Rick Hartnack, vice chairman at U.S. Bancorp. “There is no question that this sector will be central to our economic recovery. Taking the time to listen to their perspective and understand what motivates them is essential to providing the financial, legislative and moral support they need to thrive.”