Watch Small Business for Employment Trends — and it’s Bleak
December 30th, 2009By David Goldman
The Discover Small Business Watch index is the most up-to-date poll on conditions in the sector which has accounted for the vast majority of employment growth in all the economic recoveries of the past thirty-five years. The DSBW Index collapsed in November, to 76.5 from 88 in October. December remains unchanged. But fewer small business owners expect the economy to improve.
December Highlights:
- The number of small business owners who think the economy is getting worse was down to 49 percent from 53 percent in November; while 24 percent of small business owners see the economy staying the same, up from 16 percent in November; 25 percent see the economy getting better, down from 28 percent in November; and 2 percent are not sure.
- 22 percent see conditions for their own businesses getting better in the next six months, an improvement from 19 percent in November; but still in contrast to the 52 percent who see conditions getting worse, 24 percent who see things staying the same, and 3 percent who aren’t sure.
- 35 percent rate the current economy as fair, up from 30 percent in November; while 61 percent rate it as poor, and 4 percent rate it as good or excellent.
- 18 percent of owners say they will increase spending on business development activities such as advertising, inventories and capital expenditures in the next six months, 26 percent will make no changes, 51 percent plan to decrease spending, and 5 percent are not sure.
- 51 percent of owners have experienced cash flow issues in the past 90 days, down one percentage point from last month; 45 percent of owners have not experienced cash flow issues, and 4 percent aren’t sure.