U.S. Small Business Outlook 2010: Lessons Learned From Forbes Insight

By John Joyce on February 18, 2010 - Comments 2

A Case For Optimism?

Forbes, in association with CIT, conducted one-on-one interviews with small business owners to better understand the lessons learned from the past 12-18 turbulent months.  Their findings, although not earth shattering, highlight a bit of a silver lining when you consider that most respondents have learned to work smarter and do more with less.

Unfortunately, nobody in Washington understands the needs of small business owners, therefore; they have been left to fend for themselves and figure out creative ways to survive and even thrive in a difficult economy.  If the legislators just listened to the needs of business owners, we could speed up the recovery process.

OK, I’ll get off my soap box and focus on the more interesting results of the survey:

• Nearly seven out of ten (68%) disagreed that healthcare reform efforts would benefit their businesses
• Nine out of ten small business owners agreed that current stimuli do not benefit small businesses
• 62% will invest more in marketing; specifically, lead generation
• More than 60% said they will run their business more aggressively in 2010
• 50% will invest in growth or expansion
• While 33% said they would likely reduce their hiring, 29% expected to hire more workers
• 50% will hold on to their cash
• Nearly 8 out of 10 respondents agreed – coming out of the recession, the old way of doing business won’t work; we need to find new ways to take advantage of market opportunities
• 79% say their market segment is more competitive than ever
• 46% will pursue new revenue streams

Small business owners are, by definition, risk takers and will always welcome a challenge.  The past 12-18 months have made business owners better leaders and more prudent decision makers.  However, the most telling quote from this study highlights the immense challenges ahead -  “this ordeal has taken its toll on how small business owners see the economy in general. Only about one-fifth of respondents (21%) believe that the financial crisis has already bottomed out, with 47% expecting this to occur in 2010. They predict the financial markets will turn around in 2010/2011, stability will return in 2011/2012, and growth won’t come back until 2012 or later.”

Don’t hold your breath waiting for our politicians to suddenly “get it”.  Simply take your lessons, apply them to the present and future, and continue to move the rock forward.