Economy May Be Dampening Independent Spirit
More Say They Would Leave Their Businesses for Higher Paying Job
HEALTHCARE: Small Business Owners Split on Universal Coverage
Economic confidence among small business owners rose slightly in June as
cash flow concerns abated and the mood on the economy held steady,
according to the latest Discover®
Small Business WatchSM.
The monthly index rose to 80.9, up from 78.1 in May.
“Cash flow problems are back to levels that are more in line with what
we’ve typically seen since the Watch began nearly three years ago,” said
Ryan Scully, director of Discover's business
credit card. “Cash flow concerns usually erode confidence because
they represent something tangible to a business owner, more so than an
expectation or perception about the economy.”
June Highlights:
-
42 percent of small business owners say they have experienced
temporary cash flow issues in the past 90 days, down from May’s record
high of 49 percent.
-
26 percent believe economic conditions are improving, up from 23
percent in May, while 57 percent believe conditions are getting worse,
which is unchanged from the previous month; 14 percent said the
economy is staying the same, and 4 percent weren’t sure.
-
59 percent of small business operators rate the economy as poor, down
1 percent from May, while 8 percent rate the economy as excellent or
good, and 30 percent called it fair.
-
49 percent of owners see economic conditions for their businesses
getting worse, up 1 percentage point from May; 25 percent see
conditions improving, also up 1 percentage point; 22 percent say
conditions are the same; and 4 percent weren’t sure.
-
51 percent of small business owners say they plan to decrease spending
on business development over the next six months, down from 53 percent
in May; 22 percent plan to increase spending, and 24 percent are not
planning any spending changes.
POLL: More Say They Would Leave Their Business for Higher Paying Job,
Generating New Business Gets More Challenging
“The economy clearly seems to be taking its toll on the independent
spirit of small business owners,” Scully said. “This year 36 percent
told us they are willing to walk away from their own business to earn
more money working for someone else – a jump from 30 percent last year.
