Re­port: Op­ti­mism nearly as scarce as credit for more small busi­nesses

‘Far more neg­a­tive out­look’ seen among en­trepreneurs; 4 in 10 can’t se­cure fi­nanc­ing

Austin American-Statesman - - BUSINESS - By San­dra M. Jones

CHICAGO — Small busi­nesses are fac­ing the most dif­fi­cult busi­ness cli­mate in three years, ac­cord­ing to a re­port re­leased Wed­nes­day.

Among the most trou­bling signs: Four out of ev­ery 10 small-busi­ness own­ers are un­able to se­cure ad­e­quate fi­nanc­ing, ac­cord­ing to the Na­tional Small Busi­ness As­so­ci­a­tion’s midyear eco­nomic re­port.

It has been 17 years since such a large per­cent­age of small busi­nesses have had such a dif­fi­cult time get­ting loans, said Todd McCracken, pres­i­dent of the Washington-based or­ga­ni­za­tion.

“Given the di­rect cor­re­la­tion be­tween ac­cess to cap­i­tal and job growth, un­less small­busi­ness own­ers are able to se­cure fi­nanc­ing, we will con­tinue to see high un­em­ploy­ment,” McCracken said.

In the past 12 months, 11 per­cent of small busi­nesses hired work­ers, and 25 per­cent cut jobs, the re­port said.

Six months ago, the or­ga­ni­za­tion mea­sured a slight in­crease in op­ti­mism among small­busi­ness own­ers. But in the lat­est sur­vey, con­ducted among 400 small-busi­ness own­ers be­tween June 23 and July 14, nearly ev­ery in­di­ca­tor fell, in­clud­ing busi­ness con­fi­dence, rev­enue, job growth and growth pro­jec­tions.

“These tra­di­tion­ally up­beat en­trepreneurs have a far more neg­a­tive out­look to­day than they have in the last sev­eral years,” the re­port said.

Nearly half the own­ers sur­veyed said they do not think there will be any growth op­por­tu­ni­ties for their busi­ness in the com­ing year, and 41 per­cent have con­cerns about the on­go­ing vi­a­bil­ity of their busi­ness.

Like­wise, 59 per­cent of small-busi­ness own­ers ex­pect the U.S. econ­omy to re­main flat this year. Twenty-nine per­cent say they are ex­pect­ing an­other re­ces­sion.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.