Local Corporation (NASDAQ: LOCM), a leading online local media company, today reported findings from its first ever Small Business Sentiment Survey. The survey was commissioned to help understand the current sentiment of small business owners as it relates to the economy, the future and their businesses.
Conducted last month by Kelton, a global insights and research firm, the survey polled over 400 small business owners and found:
- 92 percent of small business owners report that their financial decisions are influenced by the economy
- 46 percent of respondents would be more confident about their business’ future if their personal income taxes were lowered, and 37 percent would feel this way if there was a change in administration
The survey indicates that small business confidence levels may correlate to whether business owners are hiring or cutting spending. In response to the shaky economy in the last three years, 46 percent of small business owners have considered raising prices, 40 percent have thought about cutting back on marketing spend and 24 percent have considered reducing staff. Importantly, 61 percent of business owners admit they would be willing to take a pay cut themselves to ensure that their own business doesn’t close prematurely.
Additionally, in the past three years, business owners have considered:
- Reducing operating costs (51 percent)
- Reducing operating hours (19 percent)
- Reducing benefits (16 percent) or salaries (16 percent)
- Closing temporarily (11 percent) or permanently (16 percent)