Small Business Owners Fear Double Dip Recession
Written by Ken Gaebler
86 percent of small businesses nervous about another major downturn.
Small business owners in a recent survey said that they were bracing for another major downturn in the economy.
According to a Citibank small business survey, 86 percent of small business owners said that they were nervous about the economy experiencing a double dip recession. The survey also revealed that based on this fear, well over half of business owners, 68 percent, said that they had changed how their business operates in case another crisis occurs.
"Small businesses continue to feel the effects of today's uncertain business environment," said Raj Seshadri, the head of Small Business Banking at Citibank when speaking of the news for small business owners. "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."
Business owners were taking a variety of different of different steps to prepare for a slowdown in the economy. Forty-two percent of small business owners said that they had taken steps to reduce debt, 40 percent had increased cash reserves and 34 percent had stopped hiring new workers.
While many are nervous, according to the latest Small Business Barometer by Capitol One, 43 percent of small business owners said that conditions were stabilizing. The mood remains cautious for the near future, however.
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