Health Care, Financing Top Small-Business Concerns

Small-business owners are concerned about the U.S. economy in general, but remain optimistic about the financial future of their own businesses, according to a recent survey released by the National Small Business Association.

Of the survey's 500 participants, a total of 43% believe the economy is getting worse than it was five years ago, while 36% say the economy is getting better and 21% consider it to be about the same. When asked about their outlook for the economy, more than half of the owners surveyed say they anticipate a flat economy in the upcoming year, while 29% expect continued economic expansion and 14% are waiting for a recession.

"This really ties to the general unease about the national condition, as much as it is the economy per se," says Todd McCracken, president of the NSBA. "People seem just generally pessimistic."

McCracken believes the uncertain views illustrated in the survey are in line with what the American population at large thinks about the economic situation. However, in contrast with how people feel when looking at the actual facts, it seems the economy is doing much better on paper, he says.

"This leads me to believe that a lot of their negativity has to do with the political situation, the war in Iraq and other things that wind up coming out as worry about the economy," McCracken says. "But when you look at their own businesses, [small-business entrepreneurs] are doing pretty well."