¬†According to the Discover Small Business Watch, small business owners are experiencing cash flow problems, leading to reduced economic confidence. Business owners’ economic confidence decreased in June. Previously, it had risen for two consecutive months.

 

More than half of all small business owners said they feel the economy is getting worse. Reflecting this sentiment, a full 51% reported cash flow problems. As a result, they had trouble making payroll and paying vendors. Business development suffered, as well with 43% of small business owners reporting that they had planned cutbacks in advertising and inventory.

Current events are contributing to business problems, according to many surveyed: 51% blamed the stock market for their troubles, 40% of small business owners sited that Europe’s debt crisis is having long-reaching effects, causing their businesses to falter., and 30% believe the Gulf oil spill has been negatively influencing commerce.

American business owners remain optimistic, however with 53% of respondents reporting that would they not take a job working for someone else, even if they were offered more money. Nevertheless, 40% of small business owners have considered altering their business model or switching their line of business. The main challenges they cite are government policies and regulations, and finding new business.

Leave a comment

Your email address will not be published. Required fields are marked *