Capital One Small Business Banking released the results of a recent survey of small businesses across the nation gauging their current financial condition and business projections for the next six months. The results showed that while nearly half (47 percent) of the small businesses surveyed said that the economic conditions for their companies have stayed the same, one in four (26 percent) of the business owners reported improving conditions and nearly one third (28 percent) said that their firm’s financial position is better than it was at the same time last year.

“At the onset of the economic recession, small businesses across the country were among the most heavily impacted by the downturn. However, the results of our survey suggest that we’re starting to see a leveling-off effect,” said Robert M. Kottler, Executive Vice President of Small Business Banking at Capital One. “Financial conditions for many small businesses have remained relatively constant over the past year. The lack of further deterioration and a growing access to capital are reasons to be cautiously optimistic as we look ahead.”

Asked about access to capital, more than two-thirds (78 percent) of those surveyed believed they had access to the credit and financing they need. Nevertheless, most of the small businesses surveyed said they have no plans to make major investments in their companies in the next six months. Most remained cautious about the prospect of hiring new employees, with only 28 percent reporting any plans to hire and expand their workforce and 46 percent saying they don’t plan to make any additional investments or expenditures – including spending on marketing, IT and new hires – over the next six months.

Although many small business owners across the country have seen improvements, they continue to face a variety of challenges. The ability to acquire new customers is the biggest challenge facing small businesses over the next 6 months according to 58 percent of survey respondents. Additionally, nearly 37 percent of respondents feel the ability to maintain existing customers will be the biggest challenge, while 25 percent believe identifying new revenue streams will be their greatest obstacle to overcome in the months ahead.

The Obama Administration’s efforts to increase lending are drawing even more attention to the need for small business recovery. And while there are regional differences of opinion and variances in survey results, small businesses everywhere appear to be cautiously optimistic about the economy and the state of the small business sector.