More (Gloomy) Numbers for Small Business Owners

This week American Express Open Economic Pulse Small Business Monitor released a survey based on the responses of 602 small business owners across the country. If attitudes and confidence help drive the economy, according to this report, the numbers continue to deliver bad news: one in five businesses report that they risk going out of business as a result of the current economic atmosphere. While 25% of those asked said that the FDIC increase in insured bank deposits (from $100,000 to $250,000) would be helpful to them, at the same time, 45% of small business owners believe that the government’s financial rescue package will not be effective in stabilizing the economy. Concerning the economic climate, 44% of those surveyed said that they expect their businesses to be negatively impacted over the next six months while just 23% said that they expected business to grow in the same time period. Ominously, 79% reported that their sales have been on the decline.While surveys often deliver a spectrum of views, the results of this most recent OPEN data skew rather definitively — to the south.