AprioriTrader: >> Economic Recovery & Small Businesses

Small Business Economic Trends
The NFIB recently released its Small Business Economic Trends Survey Report for April 2010. The outlook for small business is still not good.

The Index of Small Business Optimism lost 1.2 points, falling to 86.8. The persistence of Index readings below 90 is unprecedented in survey history.

From the Report (highlights by yours truly in bold):
... While news about the economy has been positive for two or three quarters, small business owners remain quite pessimistic about the future for the economy.
...
Since small firms produce half the private sector GDP, it is hard to envision a sustained recovery without their participation.
...
Capital spending is on the sidelines as is the demand for loans to finance these activities. A revival of capital spending will require a significantly improved business outlook and some support from reluctant customers. Plans to make capital expenditures over the next few months were unchanged at 20 percent, four points above the 35 year record low.
...
The news about the economy and financial markets has been positive for some time, so the source of this pessimism must be found elsewhere such as Washington D.C., the source of most business uncertainty, but also facts on the ground: 34 percent said weak sales are their top business problem and that is what business is all about.

In Pictures: What Recovery? - Small Business Still Hurting

About the NFIB
The National Federation of Independent Business foundation is one of the leading sources of information about small business in the United States. The foundation conducts research about policy-related issues as well as the business practices and economic impact of small firms through its Small Business Economic Trends reports and other economic research studies.

Further reading: