The National Federation of Independent Business Research Foundation recently conducted a poll of small business owners that revealed 75% of small employers watched the actions of the Federal Reserve Board over the last six months - and 25% of them are worried that their businesses won't survive the recession.
"The fundamental small-business problem is the poor economy, abetted by the drop in real estate values and the nation's financial turmoil," said William Dennis, who directed the poll for NFIB, in a Business Journal article. "Efforts to provide additional credit, whether through encouraging bank lending or government loan guarantees, are not likely to be of much help to small-business owners," he said.
20% of small employers have reduced, postponed or cancelled a planned investment(s) or reinvestment(s) in the last six months, though 11% increased plans. A slowing economy is the primary reason for the curbed investment in over half of cases. An absence of finance is practically never mentioned as a reason for reducing investment. Only 9% cited an inability to obtain credit, the same percentage that cited falling real estate values.
For more news and information, visit Blumberg Capital Partners.
Comments