Optimism Plunges Among Small Business Owners

Small business owners are the heartbeat of the nation.  And they are not happy.  In fact, they are worried…worried sick.

Small business owners’ optimism has dropped off the table according to a survey from Wells Fargo Bank.  The optimism index – the sum of current and future expectations in six areas such as cash flow and hiring – plunged 35 points since January of this year to 48, the lowest level since the Index started in 2003.

The previous low was 69 in August of 2003 and the high was 114 in December of 2006 (I think that is when everyone was in denial).

Although optimism dropped in all areas, the greatest decline came in business owners’ current revenue situation and future expectations for cash flow and financial situation.

Despite the seemingly woeful outlook, 94 percent of respondents said they feel successful being a small business owner, unchanged from the past, and 86 percent are satisfied being small business owners, unchanged from January. 

Thank you for making me Your Orange County Real EState Connection.

Best regards, Michael Caruso

~ by Michael A. Caruso on June 25, 2008.