August 2010

Small businesses see a weak 2011 - but they’ll survive

From Finance-Commerce.com.

Small business owners expect the recession to continue into 2011 but they’re confident about their own businesses’ prospects, according to the 2010 U.S. Bank Small Business Annual Survey.

Specifically, nine of 10 small-business owners feel the economy is currently in a recession, and nearly eight of 10 feel we will still be in a recession next year.

But despite the current economic climate, most remain confident in their own company’s ability to weather the storm. Most say that their business is financially healthy and will generate higher revenue in the next year.

This is not a good time to start a business, though, and they cited poor sales as the biggest challenge facing their business today.

Their confidence probably owes much to their experience in surviving business challenges. Four of 10 faced and survived a crisis that slashed cash flow and nearly destroyed their business in the past. The most commonly cited reason was the loss of a major client. In the future, they fear health care reform.

The survey produced national results, as well as taking a deeper look at ten key regions: Minneapolis and St. Paul, Milwaukee, Northern California, Southern California, Denver, Portland, Seattle, Cincinnati and St. Louis. Researchers heard from 2,725 owners of businesses with $10 million or less in annual revenue.