Category Archives: Small Business Surveys

Recent Surveys of Small Business

Small Business Optimism

Posted on by
Reply

Small business optimism in the US is stagnant according to the National Federation of Small Business June Survey. It is currently higher than 2009 and 2010 but lower than the beginning of the year.

According to the survey the number one issue is, “The sales outlook for small firms continues to look grim as expectations have declined for 4 months in a row and “poor sales” continues to be the #1 problem for owners in operating their business.    The net percent of owners expecting higher real sales fell 3 points to a net 0 percent of all owners (seasonally adjusted), 13 points below January’s reading. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past 3 months improved 2 percentage points, rising to a net negative 7 percent, more firms with sales trending down than up.”

A review of the June survey is available by clicking on the link June 2011 Small Business Survey.

While many believe that the numbers will improve during the fall months, others are not quite so sure. Some businesses are seeing growth albeit slow. For those businesses the require additional capital to fund the growth, invoice factoring provides and option when money is needed quickly and painlessly.

Jan J. Cunningham

The Interface Financial Group

Small Business Survey

Posted on by
5

According to the most recent Discover Small Business Survey, most small businesses do not believe the economy is improving. This survey completed in late February and published in March, is disappointing. Toward the end of 2010, most small businesses thought that there would be steady improvement in the economy is 2011 but the survey results are indicating that many small businesses do not see an improvement.  It is impossible to take one month of data and draw conclusions yet this is the nineteenth month that half of small businesses surveyed have rated the economy poor. Other survey results indicate the following:

54 percent of small business owners said the U.S. economy is getting worse, up from 41 percent in February and the highest since September 2010; 27 percent of small business owners said conditions are improving, down from 34 percent; and 15 percent said conditions are the same, down from 20 percent in February.

Small business owners’ outlook for their own businesses over the next six months also declined: 42 percent say conditions are getting worse, up from 40 percent in February; 30 percent say conditions are getting better, down from 33 percent; and 24 percent say conditions are the same, down from 25 percent.

56 percent rate the current U.S. economy as poor, equal to February; 35 percent rate it fair, up from 32 percent; 6 percent rate it good, down from 7 percent; and 3 percent rate it excellent, unchanged from the prior month.

On the upside, fewer small business owners report temporary cash flow issues. Over the past 90 days, 52 percent of small business owners reported no temporary cash flow issues that affected their ability to pay bills on time, up from 46 percent in February; 43 percent of small business owners reported having cash flow issues, down from 50 percent.

29 percent of small business owners plan to increase spending on business development in the next six month, up from 28 percent in February; 40 percent will decrease spending, down from 41 percent last month; and 27 percent say they will make no changes, down from 30 percent last month.

There are indicators that show that the overall economy is improving. It may be that the trickle down has yet to reach small businesses. As improvement occurs, business not currently having cash flow issues will need a service like invoice factoring when temproary cash flow issues surface.

Jan J. Cunningham

The Interface Financial Group

 

Small Business Banking Satisfaction Study

Posted on by
4

The JD Power and Associates 2010 U.S. Small Banking Satisfaction Study revealed that satisfaction among small business owners has declined to 711 on a 1,000-point scale, down from a score of 718 in 2009. Small business banking customers also said that they would be less likely to stay with their banks for other financial needs. The study found that 19 percent of small business owners would use the same institutions, down from 34 percent in 2008.

The study sites a number of reasons for this decline including, increased costs, fewer services and lack of credit availability. This is not good news for banks and is the second year of declining ratings. Many businesses stated that they will look for other non-bank providers to meet their needs.

This study among others may account for the recent announcement by Bank of America regarding the hiring of 1000 small business representatives across the country.  Small businesses generally are fed up with the way they have been treated and they will find alternative sources to provide the services required.

The Interface Financial Group has been providing a funding source for small businesses for over thirty eight years. Thousands of small businesses have received funding through an invoice factoring service that turns the business into a cash on delivery (COD) businesses. That cash can be used for current expenses and to help grow the businesses.

Jan J. Cunningham

The Interface Financial Group