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NSBA Releases Economic Report: Outlook not optimistic

The National Small Business Association (NSBA) has released its 2010 Mid-Year Economic Report, which shows small businesses facing the most difficult business climate they’ve faced in the last three years. The report, conducted on-line June 23 through July 14 among 400 small-business owners, shows 41% of small businesses are unable to garner adequate financing. Despite a slight increase in optimism just six months ago, small businesses today report decreases in nearly every indicator including business confidence, revenues, job growth, and growth projections. 

“Today, more small businesses are unable to get financing than at any time in the last 17 years,” stated NSBA President Todd McCracken. “Given the direct correlation between access to capital and job growth, unless small-business owners are able to secure financing, we will continue to see high unemployment.”

Few small businesses (11%) hired new employees in the last 12 months and the net number of employers who cut jobs was 25%. Despite projections for the coming year faring better—a projected net increase of 5%—the majority project no growth in their number of employees.

These traditionally-upbeat entrepreneurs have a far-more negative outlook today than they have in the last several years. Nearly half do not believe there will be any growth opportunities for their business in the coming year and well over one-third—41%—have concerns about the ongoing viability of their business. The majority of small-business owners (59%) expect the overall U.S. economy to be flat in the coming year, and 29% expect a recession.

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