Small Business Owners Send Mixed Signals On Economy, According To New American Express OPEN Research

Optimism among small business owners is on the rise. More than half (56%, up from 48% last fall) have a positive outlook on business prospects over the next six months, according to the American Express OPEN® Small Business Monitor, a semi-annual survey now in its eleventh year. At the same time, the employment picture is looking rosier: 35 percent plan to hire full- or part-time employees (up from 31% in the fall), and far fewer said they will freeze hiring or cut back (44%, down from 61% in the fall). In spite of the promising outlook, these signs of recovery do not translate into immediate plans for growth. The top priority of small business owners is maintaining their current business and sources of revenue (31%) followed closely by growing their business (29%, down from 37% last spring).

Based on how their businesses are performing, more than one-third (35%) of small business owners believe the economy is recovering, but they are proceeding with caution and managing their resources more closely by tempering plans for growth, hiring modestly and getting more out of their employees. The payoff is apparent: Two-thirds (67%) say that workforce productivity has improved and fewer are concerned about having cash available to pay bills (50% vs. 59% last spring).

“The research clearly shows that we cannot look at any one economic indicator in a vacuum to predict small business investment behavior,” said Susan Sobbott, president, American Express OPEN. “While small business owners are more optimistic about the economic recovery, they are not turning a blind eye to the uncertainty that lingers. They are waiting for more proof that the recovery is real and sustainable before investing heavily in growth initiatives.”

Men Taking on More Risk than Women

Thirty-four percent of business owners say their appetite for risk is greater than it was a year ago. Men are far more likely to say their appetite for risk is greater than it was a year ago (42% vs. 25% of women). The type of risk entrepreneurs are most willing to assume in order to grow their business is entering a new/unexplored market (19%).

1 2 3 4 Next › Last »