Survey: Small businesses say economy holding steady

By Stephanie Armstrong

Small business owners were hit hard by the recession, but they are planning on a recovery in the next six months. A survey conducted by Capital One reveals that small business owners are optimistic, despite the negative impact of the economy.

Small business owners cautiously optimistic
Capital One recently surveyed a group of small businesses to find out what they think business will be like in the near future. Of those surveyed, one in four noticed an improvement in their economic conditions, and 47 percent reported that business had stayed the same.

"However, the results of our survey suggest that we're starting to see a leveling-off effect," says Robert M. Kottler, executive vice president of small business banking at Capital One. The results of the study also showed that small businesses had some reservations about their abilities to get new customers and growing their business.

Customer growth and business expansion
While many consumers were cutting back in the previous years, they are starting to change their spending habits and giving small business an opportunity to thrive once again. Having credit card processing and merchant accounts are essential for business.

A strong focus on customer service and making sure your customer feels that they are getting the best value is necessary to survive in this economy. Many businesses have been very hesitant to take on any more debt during the recession and banks have tightened their standards when it comes to lending. The good news is that small businesses still have credit available to them, they just need a little more documentation to open up merchant accounts.

Meanwhile, small business owners have a good reason for a positive outlook. The SBA has made more than double the amount of loans it did in 2009, according to CNNMoney.

Article by Stephanie Armstrong

Published: April 27, 2010