Home |
Press
Room |
Press Release Archives | Small Businesses
Still Mired In Recession
For Immediate Release March 4, 2010
Contact: Cristi Allen
callen@decisionanalyst.com
Phone: 817-640-6166
Small Businesses Still Mired In Recession,
According To National Survey By Decision Analyst
Arlington, Texas—Small businesses in the U.S. (i.e., those with fewer
than 100 employees) are still seeing and feeling the effects of the global recession.
The good news is that small businesses are not materially worse off in January
2010 than they were in January 2009. The bad news is that business conditions
were dismal in both January of 2009 and 2010. The Decision Analyst surveys of
over 6,500 small businesses indicate that the effects of the ongoing recession
on small businesses are stabilizing (that is, things are not getting worse).
There are even hints in the survey data that economic conditions for small businesses
may be improving in 2010. For example, more small businesses in January 2010
reported “very strong” or “somewhat strong” business
activity than in January 2009 (22% in 2009 compared to 25% in 2010). However,
keep in mind that a large number of small businesses went out of business during
2009, so their answers are not included in the 2010 survey data, and this fact
should temper our optimism.
Most small businesses in the U.S. are still planning to take steps in the next
three months to control costs or reduce expenses. The top cost reductions planned,
including the following:
| Steps
Will Take To Reduce Costs In Next Three Months |
Percent Of Small
Businesses Mentioning Each Cost Reduction |
2009 |
2010 |
| Ordering smaller quantities of supplies |
29% |
26% |
| Cutting down on travel expenses |
27% |
22% |
| Delaying equipment purchases |
23% |
22% |
| Limiting overtime hours |
22% |
20% |
| Freezing hiring |
21% |
20% |
| Reducing employee parties or entertainment |
21% |
18% |
| Switching to less-expensive suppliers |
20% |
19% |
| Raising prices |
17% |
13% |
| Reducing inventories |
16% |
14% |
| Reducing employees’ hours worked |
16% |
14% |
| Freezing salaries |
14% |
17% |
| Reducing your own personal salary |
13% |
13% |
| Sending employees to fewer trade shows/ conferences |
13% |
14% |
“It is evident that many small businesses in the U.S. are still experiencing
tough economic conditions and continue to take steps to reduce costs,”
said Jerry W. Thomas, President/CEO of Decision Analyst. “Overall, 73.8%
of small businesses reported in January 2010 that they planned to take one or
more actions in the next three months to reduce operating costs, a slight improvement
over January 2009 (77%). Many small businesses continue to struggle with the
tight lending environment, however. Slightly under one-fourth (23%) of all small
businesses reported that credit is ‘less than adequate to meet needs’
(the same percentage as January 2009). It is also evident in the survey data
that these small businesses are very resilient and nimble. If general economic
conditions improve in 2010, these small businesses will react quickly and ramp
up investments in equipment and people.
“If an economic recovery comes in 2010, it will be partially driven by
the actions of millions of small businesses in the U.S. Governmental policies
and actions that encourage and inspire small businesses will tend to pay great
economic dividends because these small businesses are so efficient, productive,
and energetic,” said Jerry W. Thomas, President/CEO of Decision Analyst.
“Small businesses are key to reducing the U.S. unemployment rate since
these businesses are the primary engines of job creation.”
Methodology
Decision Analyst’s U.S. Small Business Survey 2010 was conducted online
using its Executive Advisory Board® (www.executiveadvisoryboard.com), one
of the world’s largest online panels of executives and managers (150,000
members). The 2009 survey was conducted between January 5 and January 14, 2009,
and the survey’s sample size was 3,974. The 2010 survey was conducted
between January 4 and January 15, 2010, and the survey's sample size was 2,791.
The survey was conducted among executives/managers/owners who work at companies
with less than 100 employees. The sample included small businesses in all 50
states. The margin of error is approximately 1.5%, plus or minus, at a 99% confidence
level. If you would like a free copy of the U.S. Small Business Survey 2010
report, please email Cristi Allen, callen@decisionanalyst.com.
About Decision Analyst
Decision Analyst (www.decisionanalyst.com), based in Dallas-Fort Worth, is
a leading global marketing research and analytical consulting firm specializing
in advertising testing, strategy research, new product development, and advanced
modeling for marketing-decision optimization. The 30-year-old firm delivers
competitive advantage to major clients in North America, Europe, Latin America,
and Asia. In addition, Decision Analyst operates the American Consumer Opinion®
Online panel, one of the largest online panels in the world with over seven
million members around the globe.
For additional information contact:
Cristi Allen
Publicity
Email: callen@decisionanalyst.com
Phone: 1-800-ANALYSIS (262-5974) or 1-817-640-6166
Address: 604 Avenue H East
Arlington, TX 76011
Visit our Logos
& Images page for photographs and logos,
if needed.
