Small businesses report losing an estimated $2 trillion in lost profits and asset valuation since the recession started in December 2007, according to a new study released by Barlow Research. That works out to an average loss of $253,000 for each of the eight million U.S. businesses with sales between $100,000 and $10 million. Larger companies have been less affected and are recovering more quickly according to the survey, which was fielded in July 2010.

After showing guarded optimism in the first half of the year, pessimism has returned for an increasing number of small business owners. Only 35% indicated their financial condition was improving, down from 46% in the second quarter.

When asked to estimate the chances that their company will survive the next year, 14% are less than 50% confident they will still be in business by August 2011. “One in seven small business owners are estimating their chance of survival by the flip of a coin,” said Bernie Kuechler, the Barlow Research Analyst who authored the study.

The study reveals that few small businesses believe the recession has ended. Fifty-six percent of small businesses expect the recession to last beyond 2011. Less than one in ten businesses believe the recession is over.

“We should not expect significant job creation in the near term from this segment,” according to Kuechler. More small businesses are reporting intentions to decrease than those planning to increase full-time employees, with the most planning to stay the course. The study does forecast job creation from companies with sales greater than $10 million, where optimism and growth in sales is improving.