Small business owners aren’t expecting much from the economy for the coming year. The National Small Business Association (NSBA) today released a mid-year report where 79 percent of small business owners said they anticipate a flat economy or a recession during the next year.
“Small business owners are feeling less confident in nearly every way, particularly with banks’ ability to keep their money safe,” said NSBA President Todd McCracken. “Decreasing home values, a tight credit market and failing financial institutions have led to 67 percent of small business owners who believe that the U. S. economy is worse off today than it was five years ago.”
Sixty-eight percent of small business owners said that FDIC insurance is not adequate to insure their business accounts, and nearly two-thirds either have already or are considering taking action such as spreading deposits across multiple institutions to reduce their financial risk.
On a positive note, 75 percent of small business owners said they are confident about the future of their own businesses. Another one quarter, though, did not feel confident about their own businesses.
It’s a grim, but perhaps realistic, outlook. Word to the wise: Protect your business.