The National Federation of Independent Business Owners has released its January Small Business Economic Trends report, and its Index of Small Business Optimism is down, even though the economy posted positive economic growth. The report, based on a survey of 3,938 small business owner, offers a gloomy view of today’s small business landscape:
“So we begin the year with capital spending and inventory investment plans in record low territory as well as job creation plans. More owners expect sales to fall than to increase in the first quarter, more have been cutting worker and worker compensation than increasing them and report of actual spending on capital projects are at 35 year historic lows. Interest rates are at historic lows and we have more savings to lend out, but few are willing to borrow and spend the funds.”
We keep hearing that the recession is ending. So why do small business owners lack optimism and a willingness to spend money? The report blames it on uncertainty created by federal legislation and a lack of faith in our political leadership. So how do you make 2010 a good year, even amid uncertainty?
The Wall Street Journal suggests that small business owners might help themselves in 2010 by monitoring certain economic indicators. The five that matter most to small businesses: real personal consumption expenditures, consumer confidence, the producer price index, the U.S. dollar and the unemployment rate.
The New York Timesoffers eight tips for a better year in 2010, including re-evaluating marketing strategies, looking at re-negotiating your lease, and keeping a close eye on your finances.
And the Small Business Trends blog reports that 2010 might be a better year than you’d think for small business lending. Some banks, including Wells Fargo, Bank of America and JPMorgan Chase, have vowed to increase their small business lending this year, with Wells Fargo pledging a 25 percent increase and Bank of America saying it will loan $5 billion more than last year. The banks also say they will create or increase programs to take a second look at small business loan applications that have been rejected.
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