The Economy is Bad, But I’m Doing OK
May 1, 2013
Says a new Wells Fargo small business survey. Posting similar results as the recently released US Bank survey, most entrepreneurs are wary of the economy, but are comfortable with their performance.
While the Index is down from a year ago (April 2012), it’s the third highest reading since July 2008.
• 48 % say their cash flow was very good or somewhat good over the past 12 months, up significantly from 41 percent in January. This is the best cash flow reading since the first quarter of 2009.
• 53% expect their cash flow to be very or somewhat good over the next 12 months.
• 61% are comfortable with their debt load.
• 32% have never borrowed money.
21% say attracting customers and new business is their biggest challenge. Government regulations was the second most frequent mention at 10%, followed by the weak economy at 9%, taxes at 9%, healthcare at 8% and access to credit at 4%.
“While we are seeing measured signs of recovery and businesses in general continue to improve their balance sheets, small business owners are still uncertain about the future,” said Marc Bernstein, Wells Fargo head of Small Business. “Small business owners, who now have stronger cash flow than at any time since the start of the Great Recession, tell us they’re focused on generating more steady sales, and many are holding off making investments in their business until that happens.”