One of the nation's foremost indicators of small business viability, the Discover Small Business Watch, noted some unsettling declines for the month of March, as the country's small companies were hit by major hikes at the gas pump.
According to the report, the index fell from 90.2 in February to 86.5 in March. The decline marks a significant setback considering February's figure was down from 91 the month before. Encouraging the drop in confidence were growing gas prices and the continuation of less-than-optimal economic conditions.
"Our surveys have shown that the economic events of the recent past have hit small businesses hard, and many are still struggling to sustain an individual recovery of their own," said Ryan Scully, director of Discover's business credit card.
"Nearly a third of small business owners told us they have contemplated going out of business sometime during the past two months, which is up from spring of 2008," Scully added.
There was one silver lining to the report, as 52 percent of surveyed business owners reported having no cash flow problems over the past three months, which is up from 46 percent in February. This may suggest credit conditions are improving, paving the way for entrepreneurs filing an LLC in New York, California and elsewhere.
Tags : ca, incorporation news, ny, small business management
Posted: Mar 28th, 2011