Heightened economic uncertainty, political impasse, high unemployment and ongoing debt crises all collaborated to rack confidence among small businesses in the third quarter.
The Vistage CEO Confidence Index, which measures optimism among small business leaders and executives in the U.S., fell to 83.5 in the third quarter, down from 92.9 in the previous one. The dip marks a two-year low for the index and reflects the stagnant pace of the economic recovery.
Fears of a double-dip recession have also begun to mount in recent months, further highlighting the troubles facing small companies. However, the Vistage survey showed few fears of a second downturn in the sector.
"While firms do not expect an outright recession, they anticipate that the economic growth will be very slow during the year ahead," said Dr. Richard Curtin of the University of Michigan. "As a result, they have curtailed investments and hiring, and anticipate smaller growth in profits."
While some leaders claim small businesses are reeling from a lack of credit opportunities, others hold that poor sales and weak consumer spending have been the real culprit.
Tags : Operating Agreements, Taxes, LLC, Corporate Books
Posted: Sep 27th, 2011