Small Business Watch
July 2008
Small Business Owners’ Confidence Rebounds After Record Low
Cash Flow Issues Improve Significantly and Owners Express Increased Optimism about the U.S. Economy and Economic Conditions for Their Business
After sinking to its lowest level in June, economic confidence among small business owners rebounded in July, as the number of those who said they are experiencing cash flow issues decreased significantly and general economic confidence began trending upward. The Discover® Small Business WatchSM jumped in July to 84.6, up 12.8 points from 71.8 in June.
July Highlights:
33 percent say they have experienced cash flow issues over the last 90 days, a significant decrease from 42 percent in June.
17 percent of small business owners think the U.S. economy is getting better, an increase from nine percent in June.
28 percent of owners say that economic conditions for their business are getting better, an increase from 23 percent in June.
17 percent rated the economy as good or excellent, an increase from 12 percent in June.
29 percent of owners will be increasing spending over the next six months on business development activities such as advertising, inventories and capital expenditures, up from 23 percent in June. Thirty-nine percent plan to decrease spending.
