Confidence lowers for small businesses

When it comes to the future, small businesses are looking ahead and expecting the worst. This even though research shows consumers are more confident about the future. Why the dichotomy? Because of government leadership. According to a report from Manta, small business owners believe that their business isn't a priority for President Obama's administration.

by Kristina Knight

The survey found that 80% believe their business is not a priority for the Obama administration in the coming year. More than three quarters (77%) believe the administration is hurting their business. This is a potential sign that the recession is far from over. With small businesses leery about the future it is likely their spending will drop, which could ricochet through the consumer level.

"America runs on small business," said Pamela Springer, Manta president and CEO. "For the remainder of President Obama's first term, it's vital that his administration understand the needs and concerns of small business owners. It must realize solutions to bolster small business to regain confidence and rebuild the backbone of the U.S."

The survey further found:

• 59% believe they won't grow their business in 2010
• 77% of small businesses are concerned about health care reform
• 70% say they may need to cut costs to maintain their current status

Tags: consumer confidence, economics, Manta, small business advertising, small businesses