This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Things You Should Know About Small Business: December 13

Stocks in this article: YELP

NEW YORK ( TheStreet) - What's happening in small business today?

1. Small-business owners make further cuts in capital spending. According to the latest Wells Fargo/Gallup Small Business Index, U.S. small-business owners are the "most pessimistic" they have been since the third quarter of 2010.

The survey, conducted November 12 to Nov.ember 16, used a random sample of 607 U.S. small-business owners.

It found the respondents have pulled back on capital spending plans since July. The net capital spending component over the past 12 months declined to -22 from -11 in July, the index showed.

Worse, the capital spending component (one of six used to compile the overall index) fell to -14 in November from -1 in July, the lowest level in more than two years, suggesting that small-business owners are likely to pull back on their business investments even more, given their negative expectations for the next 12 months.

The other five components, including hiring, revenue, financial situation, credit and cash flow, also declined during the same time period.

"The current negative net capital spending intentions mark a significant shift from the positive double-digit scores seen prior to 2008. Positive net spending intentions reflect how small-business owners usually expect to grow their businesses and take advantage of advancing technologies to help them do so. However, this has not been the case since the recession and financial crisis of 2008-2009, with net capital spending intentions reaching a low of -23 in November 2008," the survey found.

Small-business-owner capital spending expectations were slightly positive during the first two quarters of 2012, before turning neutral in July and then plunging in November, according to the index. The last time net capital spending intentions were lower than they are today was in July 2010, at -20, it says.

2. Online reviews increasingly leading to litigation. Businesses are growing more aggressive in how they respond to harsh reviews made on websites such as Yelp (YELP) Marketwatch.

Last week, a judge ordered a woman in Washington, D.C. to remove negative and potentially defamatory statements she made about an unsatisfactory job done in her home by a contractor.

The review was quite scathing, even implying that said contractor might have stolen jewelry out of the home. Christopher Dietz, owner of contractors Dietz Development is suing the client alleging lost work opportunities and damage to his reputation, the article says.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs