Study: Small Businesses Not Feeling Economic Recovery

Jun 27, 2011


The U.S. Bank’s annual Small Business Survey has been released, and it shows that while the economy is getting better for small businesses, many do not consider the hard times to be over:

The U.S. Bank polled 1,004 small-business owners in April and May in its 25-state footprint.

The percentage of owners who still feel like the economy is in a recession fell from 89 percent in 2010 to 78 percent this year.

Sixty-four percent of the respondents reported higher revenues than last year, versus the 55 percent who reported increases from 2009. Still, only 49 percent expect revenues to increase in 2012.

The mood in Illinois was more pessimistic: 79 percent still feel as if the economy is in a recession, and 60 percent believe the state’s economy is worse than the national economy.

While 65 percent reported higher revenues than 2010, only 44 percent believe revenues will increase in 2011.

U.S. Bank has 12 branches in the Rock River Valley: eight in Winnebago County and four in Stephenson County.

Michael Abate, the market president for U.S. Bank in the Rockford area, said his discussions with local businessmen mirror the results of the survey

“Most of the business owners I talk to will also say that things are coming back very slowly and that has impacted their ability to bring back workers who have been laid off,” he said in an email.

“There’s a sense that employment levels, while they may improve, will not get back to previous levels for quite some time.

“As bankers, I think now is the time for us to step up our activities with small-business owners to be sure they’re prepared for the recovery, which I think has begun. Loan requests are slightly higher than the last two years, and I think that’s a very good sign.”

Do you feel like things have gotten better for your business?

[via Rockford Register Star]


Photo courtesy of kalacaw and re-used under the Creative Commons license.