 |
 |
|
 |
Entrepreneurial Confidence Rises Slightly The latest Discover Small Business Watch of entrepreneurs reports that economic confidence among the Main Street business class has risen slightly in June, with its index rising to 80.9 from 78.1 last month.The main culprit for the increase is cash flow, according to the data. The number of business owners who said they experienced temporary cash flow problems decreased from nearly half last month to 42 percent in June. "Cash flow problems are back to levels that are more in line with what we've typically seen since the Watch began nearly three years ago," states Ryan Scully, director of Discover's business credit card. "Cash flow concerns usually erode confidence because they represent something tangible to a business owner, more so than an expectation or perception about the economy." Additionally, 26 percent of the entrepreneurs surveyed said they believe economic conditions are improving -- a number that's up from 23 percent in May. Interestingly, while much entrepreneurial news has focused on the plight of laid-off workers who want to become startup owners, the survey points to an opposite trend: An increasing number of small business proprietors who want to rejoin the workaday world as employees. "The economy clearly seems to be taking its toll on the independent spirit of small business owners," Scully states. "This year 36 percent told us they are willing to walk away from their own business to earn more money working for someone else - a jump from 30 percent last year. They are spending much more time this year trying to find new business and deal with government regulations." Discover this month also asked entrepreneurs about health care reform. It found that 78 percent of the business owners it surveys don't offer health care insurance. Of that number, 48 percent oppose government-run health care; of those who do offer plans, 62 percent opposed government-mandated insurance.
4 Comments |
| Posted under: Growing Your Business, Marketing, Money, Small Biz News, Startup
4 Comments Leave a commentPrevious Posts
|
 Build a Website for Less Than $500You don't have to delay launch because you can't afford a web developer. Do it yourself! 
  
Select a month to view archived posts
|
Copyright © 2010 Entrepreneur.com, Inc. All rights reserved. Privacy Policy
I don't disagree with this article, except to say that many an established small business--good, well run businesses--continue to be cash and credit starved...floundering but trying to stay afloat. In one industry I closely follow, a typical example is the entrepreneur who after the beginning of the year (2009), had a long established $500,000 line of credit closed. The banker said, "Joe, it is not personal." Joe took it personally as did five of his 12-person staff that he had to lay off.
Joe's industry association set up an emergency seminar and brought in a banker to discuss lending/credit options for these small retailer/contractors.
The "good news," as the banker said, "is that money and credit are available." But then he went on to detail how Joe and his fellow small business people could get that money. Among other things, submit three years of recent tax returns and PL statements showing a profit as well as a current PL showing strong results. Joe and the other entrepreneurs in the just looked at each other.
It seems to me if public funds have been committed to turning around this economy, entrepreneurs like Joe should be able to access it or at least a credit line of $500,000 that would put five people back to work.
Oh, by the way, one business person in the audience asked about SBA loans. The banker looked at though he had just smelled something really rancid. He said his bank was not participating in SBA loans because the terms were not good enough.
Ron
www.start-a-business-faq.com
Thanks for something positive! I think we will all be a bit more cautious and sensible with our finances after this.
Mehrasax - www.navare.etsy.com
Maybe it's my work in organizational restructuring for small businesses that skews my perspective, but I'm not as optimistic.
In the past four weeks, I've had unsolicited comments from six CEO's who said that the "rainy day" funds they were relying on to help get through the recession were drying up.
I hear about the early signs of recovery, but I've never had this much feedback indicating that we're not in the clear yet.
A perspective from the front lines.
Jim
Jim Connolly | Organizational Results Experts | www.orgresults.net/newsblog
That's good news, I feel that the worst is behind us and all you need to do is see how the media is reacting they went from predicting the end of the world daily, once that happens you know recovery is on the way