Poll: Small business has the blues

Although credit conditions have improved, confidence remains low among small-business owners, according to the latest Wells Fargo and Gallup Small Business Index poll.

The index of business owner confidence finished at negative 28, a 17-point drop from April”™s findings.

The index is measured in sums of the “present situation” and “future expectations” of small-business owners in the following areas: cash flow, revenues, financial situation, capital allocation spending, job hiring and credit availability.

At present, 36 percent of those surveyed ranked their cash flow as “somewhat good” or “very good” over the course of a 12-month period, down from 42 percent.

Marc Bernstein, head of Wells Fargo”™s small-business division, said in the report, “We grew small-business lending by 30 percent over the previous quarter and ”“ in an effort to increase approvals ”“ took a ”˜second look”™ at declined applications, while continuing to apply our disciplined credit and underwriting principles.”

Gauging expectations of future cash flow, some 43 percent expect company cash flow to increase, down some 10 percent.

In terms of capital spending, 37 percent expected allocation for spending to decrease either “a lot” or “a little” over the next 12 months, noticeably up from 29 percent.
On a better note, the July survey indicated 32 percent of respondents said credit was “somewhat” or “very difficult” to obtain for the past 12 months, a 4 percent drop from April findings.