Recent Survey Reveals that Small Business - "Engines of Growth" - are Pessimistic About the Economy
Sunovis Financial examines the recent results of a survey conducted by The Hartford Insurance group showing that small business owners in America are decidedly pessimistic about the economic conditions in the U.S. now and for the coming year. Weak growth, taxes, and federal regulations were just a few of the reasons cited by small business owners for their lack of confidence in the near term future for U.S. economic expansion. Small businesses have a hard time finding capital, but Sunovis Financial assists with lending needs nationwide.
San Francisco, CA (PRWEB) October 30, 2012
The Hartford Insurance group released survey results last week showing that just 33 percent of small business owners are optimistic that the nation's economy will improve this year. This is despite comments made by President Barack Obama in the recent presidential debate calling small business in America the “engines of growth.”
Further highlighting the lack of growth in the small business sector was the finding that nearly 60 percent of the small businesses with less than 100 employees surveyed had done any hiring in the past year. Additionally, 67 percent said they have no plans to hire new employees in the coming 12 months. Considering that small business in America is credited with creating over 50 percent of all new jobs by the Small Business Administration, these figures paint a bleak picture for the employment rate in 2013.
Sunovis Financial's mission is to help small businesses stabilize, grow and thrive through its services, including SBA loans and other types of business loans. Many companies are pessimistic as they have been cut off from financing sources due to distress in the capital markets. However, Sunovis has a number of alternatives and works with banks nationwide who are indeed lending.
Just over half of the small business owners surveyed (52 percent), said that they are focusing on simply maintaining their current employees and company income. An additional 40 percent did say that they will be focusing on growth in the coming year.
Three primary reasons were highlighted by those surveyed as contributing to the pessimism regarding the economy. 67 percent of those surveyed cited weak economic growth in the U.S., while 59 percent said taxes were holding them back, and 56 percent listed uncertainty regarding federal regulations in their industry as a reason for their pessimism.
Tax increases are expected by over 75 percent of those surveyed and 54 percent said they will refrain from hiring to offset the increased tax burden. Even worse, nearly 30 percent plan on reducing their staff to offset the effects of higher taxes.
Despite all the seeming doom and gloom, nearly 70 percent of those responding to the survey said they felt their business was “moderately successful” in 2012. Other upsides to the current business climate that were cited by many respondents are the positive changes they've made in their businesses. Cost cutting, better client relationships, and improved operation efficiencies have many small businesses well positioned for growth once the economy improves.
About Sunovis Financial
Sunovis helps small businesses and borrowers with their lending needs. The mission of the company is to help rebuild the US economy, one business and one loan at a time.
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