The Discover Small Business Watch’s monthly index is confirming the general population’s dwindling confidence in the economy. The index, which began surveying randomly selected small businesses in August 2006, fell more than 10 points in May to 78.1. The survey poses six questions to small business owners and includes whether or not the owner plans to decrease spending on development and if the owner believes the economy is worsening.
Ryan Scully, director of the Discover business credit card, explains that he, “…saw cash flow problems jump this month to their highest level in two and a half years, which is certainly not going to boost the optimism of a small-business owner, especially in this economic climate.”
In May, about half of small business owners surveyed have had short-term cash flow problems in the past 90 days (up from 40% from April) and another 53% say they have plans to reduce spending on business development over the next six months (up from 46% in April).
Click here to read the entire article: Business Owners Report Cash Flow Concerns