Discover® Small Business WatchSM: Small Business Economic Confidence Falls in December after 3-Month Rise
27 Dicembre 2010 - 4:11PM
Business Wire
Three months of rising confidence among small business owners
stalled in December, as fewer see economy getting better and more
see it getting worse, according to the Discover® Small Business
WatchSM. The monthly index dropped to 81.6 in December, down 5.6
points from November. The index remains 4.6 points higher than one
year ago.
Twenty-five percent of small business owners said the economy is
getting better this month, down from 33 percent in November; 51
percent said it is getting worse, up from 46 percent; and 22
percent said the economy is staying the same, up from 17 percent
the prior month.
“Through the four years we’ve been studying them, small business
owners have remained a bit fickle when it comes to their confidence
in the economy,” said Ryan Scully, director of Discover’s business
card. “Like the rest of us, they’re seeing some positive signs, but
they aren’t ready to declare victory, especially not with 62
percent of them still rating the economy as poor.”
Other Confidence Indicators
- 25 percent of small business owners
expect economic conditions for their businesses to improve in the
first half of 2011, a drop from 28 percent a month ago; 26 percent
expect conditions to remain the same, up from 24 percent; and 43
percent expect conditions to worsen, down from 44 percent in
November.
- 21 percent of small business owners
will increase spending on business development in the next 6
months, down from 25 percent in November. 42 percent will decrease
business development spending, up from 40 percent; and 32 percent
do not plan any changes, up from 28 percent last month.
- 62 percent rate the current economy as
poor, up from 59 percent in November; 30 percent rate the economy
fair; 5 percent rate it good; and 3 percent rate it excellent.
- 45 percent have encountered temporary
cash flow issues within the last 90 days that have caused them to
hold off on paying some bills, up from 43 percent in November,
while 49 percent have not had cash flow issues; and 6 percent were
not sure.
Financial Planning Poll: Retirement Planning Slows
The number of small business owners who have a financial plan
for retirement is down from a year earlier, when the Watch first
surveyed small business owners on the topic. This year, 50 percent
of small business owners said they have a financial plan for their
retirement, down from 62 percent in 2009.
At the same time, the recession has depleted the savings of 74
percent of small business owners, the same number as last year,
while 20 percent said the recession had no impact, and 5 percent
saw their retirement savings increase.
When asked how much their retirement savings they had lost,
fewer small business owners than last year reported that they had
lost between 30 and 50 percent of their savings.
Asked of those small business owners who
said their retirement savings had decreased:
How much did the recession decrease your retirement savings?
2009 2010 A decrease of up to 10
percent 12% 17% A decrease of 10 to 20 percent
24% 17% A decrease of 20 to 30 percent 17% 24%
A decrease of 30 to 50 percent 24% 18% A decrease of
more than 50 percent 19% 20% Not sure 5%
5%
When asked how likely is it that they will have enough resources
to last through retirement, 56 percent indicated it was somewhat or
very likely, down 63 percent from last year.
How likely is it that you will have enough resources to last
through your retirement?
2009
2010 Very likely 24% 24% Somewhat likely
39% 32% Not very likely 25% 24% Not at
all likely 7% 11% Not sure 4% 9%
Fewer Planning to Retire
More small business owners are putting the brakes on retirement.
When asked if they plan to retire by a certain age, 38 percent of
small business owners said they do not plan to retire, up from 30
percent a year ago.
When asked “Do you plan to retire before age 60, between
ages 60 and 65, between 65 and 70 or do you plan to retire after
age 70?” US small business owners say they: 2009
2010 Do not plan to retire 30% 38% Plan to
retire before age 60 13% 14% Plan to retire between
ages 60 and 65 28% 21% Plan to retire between ages 65
and 70 18% 19% Plan to retire after age 70 9%
8% Not sure 3% 1%
About the Small Business Watch
The Discover Small Business Watch is a monthly index measuring
the relative economic confidence of U.S. small business owners who
have less than five employees, a segment that consists of 22
million businesses producing more than a trillion dollars in annual
receipts. The Watch is based on a national random survey of 750
small business owners. It is commissioned by Discover Business
card, which strives to offer the best business credit card for
American small businesses, and is conducted by Rasmussen Reports,
LLC (www.rasmussenreports.com), an independent survey research
firm. The numeric index is calculated by assigning values to
responses to a set of five consistent questions. The base value of
the Watch was established at 100.0 based on surveys conducted in
August 2006. In addition to generating the index, the Small
Business Watch surveys small business owners every month on key
issues, and polls 3,000 consumers four times per year to gauge
purchasing behavior and attitudes towards small businesses. For
past results and survey data, visit
www.discovercard.com/business/watch. For information on Discover
Business card, visit www.discovercard.com/business.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company operates the Discover card, America's cash rewards
pioneer, and offers personal and student loans, online savings
accounts, certificates of deposit and money market accounts through
its Discover Bank subsidiary. Its payment businesses consist of
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discoverfinancial.com.
The views and opinions expressed by small business owners and
consumers who participate in the Small Business Watch survey are
their own and do not necessarily reflect those of Discover
Financial Services or its affiliates.
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