Small businesses cautiously optimistic

A majority of small business owners express concern over another economic downturn, but 75 percent say they are prepared to weather the storm, says the latest Citibank small business survey.

About 68 percent of small business owners report having changed the way they do business to match the economic climate.

Survey results were derived from a telephone poll conducted among a national random sample of 521 small businesses with revenues over $100,000 and less than 100 employees.

“Small businesses continue to feel the effects of today’s uncertain business environment,” said Raj Seshadri, head of Small Business Banking in the survey findings. “Yet we are encouraged to see businesses adjusting to the economic environment and preparing for additional challenges ”“ so they are ready to expand and grow when conditions improve.”

To grow their business, 61 percent of small business owners surveyed say they will work longer hours themselves, about 48 percent say they will increase marketing efforts and 44 percent say they plan to increase employee productivity or get by with fewer employees.

Though only 28 percent of business owners say their business is better off today than a year ago, 75 percent still say they would begin their business again today, having known what economic challenges awaited them.

That finding was up four percentage points from Citibank”™s March small business survey.

Small businesses, however, remain vigilant with hiring; a reported 83 percent plan to reduce staff (7 percent) or retain (76 percent) the same number of employees.