Monday, November 14, 2005

Small Business Optimism Wanes, Study Says

As the end of 2005 approaches, small businesses are more wary of the future as a yearlong trend away from optimism continues, according to a new study from the International Profit Associates Small Business Research Board (IPA SBRB).
Confidence in the general economy has eroded. Just 26% of those surveyed say they expect the economy to improve over the next twelve months. This compares to 53% who said the economy would improve at the beginning of the year and 43% who thought the economy would improve in an IPA SBRB survey in July.
Conversely, the number of those businesses saying the economy would be worse over the next 12 months has increased four-fold during the year.
In the current study, 39% of the small business owners and managers surveyed said the economy would be worse during the next year. This compares to 10% who felt this way at the beginning of 2005.
Small business revenue expectations reflect these feelings. In the current study, 48% of those surveyed say their revenues will increase for the year. This compares to 71% who thought their revenue would increase in the IPA SBRB survey in January.

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