Small Business Owners Resilient
March 5 2009 by Fayazuddin A. Shirazi
Even as the U.S. economy is gripped by one of the worst economic conditions, small business owners are apparently confident about economic turnaround with the majority of them approving the decision to be a part of the business world as correct. However, they are extremely doubtful if the new stimulus package would be of any help to them, with the majority of small business owners lamenting that the stimulus package does no good to them and that their businesses face increasing risk of falling apart.
According to a recent survey by Palo Alto, CA, based online payroll services firm PayCycle, an overwhelming 87 percent of the respondents believed that their decision to start a business in these crisis-laden times was not only right, but given an opportunity they would prefer starting a new business again. Only three percent however said that they would not start a business again.
Yet another recent survey by MerchantCircle, a Silicon Valley based privately funded Internet marketing firm, which gauged the sentiment of small business owners on the recently announced U.S. stimulus package, pointed out that more than 60 percent of small business owners believe the new stimulus package will do nothing to save their businesses.
According to MerchantCircle survey nearly three quarters (73 percent) have reported ‘moderate’ to ‘severe’ sales and revenue declines over the past year.
“The local business owners we surveyed overwhelmingly disapprove of the stimulus and don’t believe it does enough for small business owners. Clearly the messages of hope and recovery are not resonating with local businesses all across our nation,” Darren Waddell, Vice President, MerchantCircle said in a statement.
Other findings of the MerchantCircle study include, 27 percent respondents report not knowing enough about the stimulus package to comment, and that small businesses want more and/or better ‘business breaks’ to survive. Interestingly, nearly 80 percent disapproved the Bush Administration stimulus, saying it did not work.
Additionally, while the MerchantCircle survey revealed small business owners were still unsure about the future of the U.S. economy, the PayScale survey on the other hand said: “87 percent do not regret their decision to go into business and would do it over again if they had to.”
More than two-thirds of the PayScale study respondents said they started their own business because they wanted the freedom to work for themselves. Six percent said they started their businesses because they had been laid off, while 5 percent were continuing a family business. Twenty-two percent cited a variety of other reasons, including wanting to be more available to family, the desire to work with a nonprofit and running a side business to supplement income.Among the challenges confronting small-business owners, the PayScale survey which compiled responses from 478 small business owners, said that foremost happen to be finding good employees, with 29 percent believing it to be the biggest challenge, followed by dealing with legal and accounting issues. About 26 percent of the respondents believed tackling legal and accounting issues was a major challenge, the survey said.