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Magazine > Small Business > News Content

Survey: Small businesses bullish on economy

4/12/2010 8:26:02 PM

Waltham, Mass.--Small business owners are feeling more positive these days, with 79 percent of those polled for a new survey describing their attitudes toward the U.S. economy over the next 12 months as falling within the range of confident to neutral.

According to a news release, e-mail marketing company Constant Contact received more than 6,800 responses from small business owners to its survey, which was titled "Small Business Attitudes and Outlook Survey," and sent via a targeted e-mail distribution between Feb. 22 and April 1.

When asked about their outlook for the economy over the next 12 months, the greatest percentage of respondents, 35 percent, said they anticipated an economic rebound in the second half of 2010, while 29 percent said they expected the economic situation to remain the same, and 15 percent expected a rebound in the first half of 2010.

Other key findings from the survey included the following:

Small businesses anticipate growth in 2010.

Small businesses are doing more with less and are looking for new efficiencies as costs increase.

Small businesses question government support.

"Small businesses across the country were among the most heavily impacted by the economic downturn," Gail Goodman, chief executive officer and chairman of Constant Contact, said in the release. "However, the results of our survey suggest we are starting to see a leveling-off effect that has these determined small business owners feeling more optimistic."

When asked what they anticipated for their businesses in terms of growth in 2010, 70 percent of respondents said they expected to see some degree of growth, with 18 percent saying they expected to see significant growth and 52 percent anticipating moderate growth.

Of those expecting to see business grow moderately or significantly, however, only 39 percent said they planned to hire additional employees, while 61 percent said they do not plan to do any hiring.

When asked about the cost of doing business, 50 percent of survey respondents said those costs had increased somewhat while 15 percent said they had increased significantly over the past 12 months.

The most marked increases were in the areas of material/supplies (64 percent), followed by marketing (57 percent), taxes (45 percent), product inventory (37 percent) and employee benefits (32 percent), the survey showed.

In response to financial pressures, the greatest percentage of survey-takers, 57 percent, said they reduced their operating costs, while 43 percent cut their marketing budgets or reduced their travel/entertainment spending. In addition, 35 percent said they changed their product or service offerings and 31 percent reduced prices.

Only 22 percent reported that the economy forced them to lay off employees and 17 percent said the economy prompted them to have to reduce employee benefits.

When it comes to marketing, the survey showed that the No. 1 tool ranked as "very important" by 90 percent of survey-takers is word-of-mouth marketing, followed by e-mail marketing, ranked as "very important" by 55 percent of respondents, radio (53 percent), events (37 percent) and direct mail (31 percent).

In the realm of social media, the greatest percentage of survey-takers, 51 percent, said they considered Facebook an important tool for marketing their small business, followed by blogs at 29 percent, LinkedIn at 27 percent, Twitter at 26 percent and YouTube at 16 percent.

Another topic covered by Constant Contact's survey was the government's role in the economic recovery, specifically as it relates to small businesses.

Survey results reveal that 27 percent of respondents believe the federal government is "neutral" when it comes to small businesses, while 26 percent said it is "very unsupportive" and 23 percent said it is "moderately unsupportive."

When it comes to the hot-button topic of health care reform, 26 percent of survey respondents said they believe it will have a negative impact on their business, while 23 percent said it will have little impact on their business, 20 percent were unsure, 16 percent said it would impact their business positively and 15 percent didn't have enough information about reform to know how it would impact their business.

Constant Contact conducted its survey in collaboration with other small business advocates, including the American Chamber of Commerce Executives, SCORE and the Association of Small Business Development Centers.

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