October 4, 2011

Even though the National Bureau of Economic Research declared the Great Recession over in 2009, many small business owners are still not convinced. Based on how their businesses are performing, more than one-third of small business owners (38 percent) believe we are still in recession, according to the American Express OPEN Small Business Monitor, a semi-annual survey of business owners.

While the economy does seem to affect some plans (27 percent say they do not plan to grow in the next six months), there are signs small businesses are in a better position to move into growth mode when things improve. They’re less concerned about cash flow (55 percent have concerns, down from 66 percent in the spring) and are more likely to make capital investments (48 percent, up from 44 percent in the spring).

They’re also being more judicious with hiring: 31 percent say they will hire over the next six months, down slightly from the spring (35 percent). Concurrently, they are taking care of current staff. Nearly half (49 percent) offer healthcare coverage to employees—up significantly from just six months ago (36 percent)—and an increasing number are offering flex time (42 percent, up from 35 percent in fall 2010).

Among the businesses that identified as growing despite the effect of the economy, 58 percent say they will use social media to attract new customers. Among those already using social media, Facebook is the most popular way to reach new customers (33 percent). Nearly four-in-ten business owners (37 percent) say their company’s social media presence is an extension of what they do everyday when they connect with customers.

To read more small business responses to questions on capital investments, hiring, cash flow, social media and more, download the Fall 2011 American Express OPEN Small Business Monitor.

You can also view results from the Spring 2011 Monitor, the Fall 2010 Monitor, the Spring 2010 Monitor, the 2009 Holiday Monitor and the Fall 2009 Monitor. 

Image credit: Preferred Solutions, Marie Seipenko, Northville, MI, Member Since: 1998

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• Money

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American Express OPEN, Article, financial management, recession, economy, cash flow, investing, social media, hiring, American Express OPEN, National Bureau of Economic Research

Join the conversation ( 1 )

• Kirsten Clark 7 months ago

  

  In a good economy or a bad economy, in order for a business to succeed it must understand its financial condition. Small business owners must pay attention to their financial statements, continually make changes along the way and know where their cash is going. I’m a big advocate of cash flow projections. In fact I’ve created a website that explains in detail why cash flow projections are such an important tool to the business. You can find this information at www.smartbusinesscashflow.com.