Hiring worries, love of technology, and a generally upbeat mood about the economy — these are just some of the key findings in Allbusiness's newest SMB State of the Union survey, which polled almost 1,000 key small business leaders across the country.
I want to take a quick look at our survey results and then delve deeper into a few of these findings to predict their likely impact on your small business.
While the U.S. economy continues to show signs of weakness, a surprising 75 percent of those polled by AllBusiness are optimistic about the coming year and expect business to pick up. Fifty percent said they expect to add staff, 62 percent plan to increase technology spending, and 21 percent expect to add office space.
"Our members are exactly where the [AllBusiness] survey is; they are cautiously optimistic," says Karen Kerrigan, president and chief executive of the Small Business & Entrepreneurship Council. "You see the GDP numbers and then you hear the doom and gloom numbers, and when we go out to members in various states, you hear that business is really good."
That doesn't mean, though, that small business owners aren't worried about a couple of issues. In fact, hiring and retaining quality employees surged in importance in the poll, up to 45 percent from 35 percent in the fourth quarter of 2005. Concern over managing business growth and the cost of health insurance also grew during the year, rising to 38 percent from 35 percent, and 34 percent from 30 percent, respectively.
Managing cash flow, however, was the second most pressing concern. It was cited by 40 percent of those surveyed, although that was down from 44 percent a year ago. If poll results are any indication, the coming year will also see more small business owners than ever integrate technology and the Web into their businesses. The survey found that 92 percent of those polled regularly use e-mail, up from 85 percent in 2005. The percentage of those visiting business-related Web sites, using search engines, and reading e-newsletters and RSS feeds all showed increases.
About half of those polled reported using Web-based tools at least weekly, up from 43 percent a year ago, and the percentage of those purchasing goods over the Internet also increased. Two thirds of those polled also now have their own Web site, up from 44 percent a year ago.
Next week it's on to a more detailed look at a number of the surprising poll findings — like what small business owners really think about raising the minimum wage and what the debate says about the crazy world of Washington politics.
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