8/20/2008
New Data Reveals How Small Businesses Cope in Bad Times
by Timothy Lee, Associate Extension Specialist, UALR Lead Center
According to the latest Small Business Economic Trends Report from the National Federation of Independent Business, the Index of Small Business Optimism is now at recession-level readings. Small business owners' expectations for real sales gains and improvements in business conditions are as bad as in 1980-82, the worst recession period in recent years.
How are entrepreneurs coping with these bad times? A new National Small Business Poll, Economic Downturn, has answers showing:
Twenty percent of small employers have reduced, postponed or cancelled a planned investment or reinvestment in the last six months; the slowing economy is the primary reason in more than half of these cases.
Increased marketing and sales activity is a common strategy to combat an economic downturn. However, this is one of the least frequent approaches a small business owner uses.
Forty-four percent of small business owners are spending more time at their businesses today than six months ago.
Over the past six months, small business owners are highly likely to have become more attentive to their cash flow and inventory status.
A complete copy of the poll can be found at:
http://www.411sbfacts.com/sbpoll.php?POLLID=0065
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