Small businesses remain cautious, but some are making plans to hire again
- November 18, 2010
A poll of nearly 2,000 small businesses in the third quarter found continued caution about the overall economy and a dash of optimism. Capital One Small Business Banking released the results of a survey today that suggests that lingering concerns about the overall economy will cause many U.S. small businesses to hold spending on business development and investments at current levels.
However, 30 percent plan to add positions over the next six months.
“Our survey results … suggest that financial performance is stable for many of the small businesses we surveyed, but some respondents have a more cautious outlook about their growth and expectations for the broader economy and their business,” Robert M. Kottler, executive vice president of small business banking at Capital One, said in a statement. “It is a positive sign, however, that most small businesses believe they have access to the credit and financing they need, and many are making plans to increase their workforce and begin hiring again.”
Fifty one percent, of the 1,910 small business owners polled in New York, New Jersey, Louisiana, Texas and the Washington, D. C., metropolitan area said their firm’s financial position has held steady relative to one year ago. However, fewer respondents reported improved finances compared to the last quarter.
Nearly three-quarters, 73 percent, said they are able to access the financing they need, while 22 percent said they don’t have adequate financing. Asked about funding sources 52 percent responded that they would seek financing from a bank or commercial lender. A slightly increased number — 40 percent compared to 35 percent last quarter — said they would rely on personal savings.
Braun Research of Princeton, N.J., conducted the survey by telephone from Sept. 15- through Oct.5.