Small Business Finance News
Study Reveals Consumers' Inconsistent Behavior And See Saw Economy
Written by Jenna Weiner
A report from BizBen.com reveals economic inconsistencies that shouldn't leave SMB owners discouraged.
It may be good news for small business owners who were disappointed with November sales that they might not offer an accurate indication of sales for upcoming months. According to a new study released by BizBen.com, the November sales figures for California SMBs failed to measure up to improved activity in the previous month and reports of an improved economy.
Experts believe the patterns of inconsistency in the economy are reflected in the month-to-month fluctuations in sales reports for California's small and mid-sized businesses. November's 954 closed deals represent a sharp decline from the escrow gains seen in October when 1,314 SMBs were successfully sold.
The BizBen.com report also suggests November slumps are a regular pattern, with November 2008 also showing a decline in sales from the previous month.
"Uncertainty is still a major operating factor in the marketplace," Peter Siegel, MBA, founder and CEO of BizBen.com, told Earth Times. Nonetheless, he believes SMB owners will find speedy economic recovery. "I put my money on California's small business entrepreneurs to get their confidence back before many other players in this economy," he says.
That may be a bet worth taking; SMBs are expected to play a critical role in economic recovery. According to the Small Business Administration, SMBs represent 99.7 percent of all employer firms and have generated 64 percent of net new jobs over the past 15 years.
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