It was good while it lasted – sort of.
Six months ago, optimism among entrepreneurs had rebounded. Today, some 88% of business owners anticipate a flat or recessionary economy in the next 12 months. That is the highest percentage since July, 2009, according to the 2011 Mid-Year Economic Report from the National Small Business Association, a Washington lobbying group.
The report, released twice each year, is based on survey responses from 400 small-business owners. Other surveys of released recently have yielded similar results.)
To be sure, there were a few bright spots. Respondents reported the lowest net employment decreases in the past three years. And 17% project employment growth in the coming year, compared with 13% six months ago.
But revenue projections for the coming 12 months dipped, and 40% of respondents said they expect no growth opportunities. Also, 73% reported being impacted by the credit crunch, just slightly down from 75% six months ago. (See related story, Private Sector Jobs Increase by 114,000.)
Small-business owners pointed to several reasons for their gloomy outlook. Almost 70% said economic uncertainty is a top concern. Declined consumer spending (40%), the cost of health insurance (33%), and regulatory burdens (31%) followed.