It’s a sign of the times when entrepreneurs feel more upbeat partly because competitors have gone out of business. But that’s typical of the mixed mood among small-business owners these days, as reflected in the latest American Express Open Small Business Monitor survey of that constituency.
In polling conducted last month, 68 percent of the small-business owners said they’re “stressed out” by the economy, even though 55 percent now have a positive view of it. Forty-two percent said they have plans to make capital investments in their business; 31 percent believe the recession creates opportunities for their business.
On the plus side, the number who have a positive outlook on the economy has risen to its current 55 percent from 45 percent in March. However, there is a darker side to this: Among those who see leeway for growth, 44 percent say “these opportunities come as a result of less competition” — one consequence of other companies going bust. There’s been an uptick, meanwhile, in the number of owners with cash-flow difficulties, from 57 percent in March to 60 percent in the new poll.
Such factors have taken their toll on the entrepreneurial spirit. One indication of this: 49 percent of respondents said they’re “not willing to take on financial risk to grow their business,” the highest figure since the inception of these semi-annual surveys in 2002. And willingness is beside the point for some, as 19 percent said they have trouble accessing capital. Indeed, 35 percent are tapping “personal assets” to keep their business going; 27 percent have stopped taking a salary.
Most drastically, 17 percent believe they’re at risk of going out of business in the next six months due to the economy, up from 11 percent saying so in March. Little wonder, then, that a sizable minority of owners (31 percent) said the recession “has caused them to question their decision to become an entrepreneur.”
For all that, though, 73 percent of the respondents said they believe the rewards of being a small-business owner outweigh the demands this role places on them. And finding a silver lining in the recession, 63 percent said they feel they’re better business owners because of it.
