FedEx Office (formerly FedEx Kinko’s), an operating company of FedEx Corp. released the results of its second annual Signs of the Times national small business survey. The findings show 54 percent of respondents were very concerned about the current economy’s impact on their business, up from 40 percent in 2008. Another 39 percent reported they were moderately concerned. Despite this anxiety, 75 percent of those polled were confident they will be open for business at this time next year and almost half (46 percent) said they would be willing to open another small business today if they had the proper financial backing.

This year’s survey, which was conducted online in February, also found decreased consumer spending has taken its toll on small businesses. Seventy percent reported their 2008 profits were negatively affected due to a decline in consumer spending. Of that group, nearly two-fifths (39 percent) have seen their year-over-year profits drop by more than 25 percent. In addition, 73 percent of small businesses anticipate flat or falling profits this year, up from 66 percent in 2008.

"Given the continued contraction of the marketplace, it’s not surprising the small business outlook has worsened over the past year," said Brian Philips, president and CEO of FedEx Office. "Yet, despite increased concerns, many small businesses are cautiously optimistic and that is a positive sign that Main Street can emerge from this downturn."

This optimism is also reflected by the 45 percent of small businesses that confirmed they would choose to open for business today, even if they had to do it all over again in the current economy. Moreover, the survey shows a greater number of those polled plan to invest in themselves with nearly half (47 percent) planning to increase their marketing and advertising spending this year as a result of the economy, compared to 38 percent who considered the change last year.

Signs Mean Business

When budgets are tight, many small businesses turn to the basics of marketing, and the use of signs and banners to grab customer attention is a time-tested technique. In fact, 74 percent of small businesses polled believe signs, banners and posters help drive customers to businesses. Another 55 percent indicated they use them regularly in their current strategy, and 79 percent said they agreed or strongly agreed that they are cost-effective marketing and advertising tools.