August Highlights:
- The number of small business owners who think the economy is getting worse dropped to 43 percent in August, the lowest reading on that data point since the Watch’s inception exactly three years ago. This month, 38 percent of owners say the economy is getting better, up from 30 percent in July; 15 percent believe that the economy is staying the same, down from 16 percent in July; and 4 percent remain unsure.
- 48 percent of small business owners rate the economy as poor, which is the lowest percentage since February 2008, while 41 percent rate it fair and 9 percent say it is excellent or good.
- 30 percent of small business owners see economic conditions for their businesses improving, up from 29 percent in July; 44 percent see their own conditions getting worse, down from 46 percent in July; and 23 percent say the climate is unchanged.
- 27 percent of small business owners say they plan to increase spending on business development, such as advertising, inventory and capital expenditures, which is up from 23 percent in July; 43 percent plan to decrease spending, down from 49 percent in July; 25 percent are planning no changes; and 5 percent aren’t sure.
- 51 percent of owners say they have experienced cash flow issues in the past 90 days, down from 53 percent in July.
Small Business Owners See Green Growth in Recovery
In a post-recession recovery, small business owners say so-called “green” industries show potential for growth opportunities, but few are employing green tactics in ways that help their bottom lines.
"When entrepreneurs look for opportunities in the post-recession economy, they see the most potential in green industries, technology, energy and business services," Scully said. "On the other hand, we see less excitement around business segments such as manufacturing, financial services, retail and food service as avenues for growth."
Highlights:
When asked to choose from a list of business segments with the best opportunity for growth, small business owners said they see the most potential in the following areas:
- Green Industries, 13 percent
- Business Services, 10 percent
- Energy, 9 percent
- Technology, 9 percent
- Financial Services, 8 percent
- Food Service & Restaurants, 6 percent
- Manufacturing, 5 percent
- Retail, 4 percent
- Transportation, 2 percent
- Not sure, 35 percent
When asked to select from a list of business segments with the least opportunity for growth, owners made the following choices:
- Manufacturing, 18 percent
- Financial Services, 15 percent
- Food Service & Restaurants, 10 percent
- Retail, 10 percent
- Business Services, 9 percent
- Energy, 6 percent
- Green Industries, 4 percent
- Transportation, 2 percent
- Technology, 1 percent
- Not sure, 24 percent
Nearly half of small business owners, 48 percent, say that green industries have no impact on their business, while 30 percent say green industries hurt their business and 20 percent say they help.
When asked which green industries could help their businesses the most, 18 percent chose alternative fuels, followed by energy conservation, 11 percent; recycling, 9 percent; and solar power, wind power, transportation, and water conservation each received 4 percent of the vote. However, this issue has a high degree of uncertainty as 46 percent said they were “not sure” which of these industries could help them the most.
When it comes to going green themselves, 71 percent of small business owners have not instituted any green measures in the past year that have helped profits. Of the 21 percent who did use such applications, 49 percent said energy conservation had the most significant effect on their bottom lines, followed by alternative fuels, 20 percent, and recycling, 20 percent. Solar power, wind power, water conservation and transportation all garnered less than 5 percent of the vote apiece.
In the next six months, 23 percent of small business owners said they have plans to institute green measures at their businesses, while 65 percent said they don’t and 12 percent weren’t sure.
