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Survey: Majority Of Small Companies Suffered
Written by Jenna Weiner
Study highlights the devastating impact of the down economy on the nation's small businesses.
In small business news that won't come as a surprise to many, an Office Depot survey found that the economy negatively affected two-thirds of the country's small businesses, with 37 percent of them saying that business has either been much worse or a little worse.
More than 40 percent of those surveyed reported decreased profits over last year. Of that 40 percent, 20 percent saw decreases of more than 10 percent, and 21 percent saw slides of more than 25 percent, according to the survey. About three in 10 reported steady profitability.
The Small Business Index also found that just 42 percent of respondents expect economic improvement in the next six months, which is down from 58 percent in October 2010. Seventy-nine percent of the businesses don't plan to add to their staff in that time.
"Small businesses continue to be deeply affected and concerned by the economy," Office Depot Chairman and CEO Neil Austrian said in a press release. "In addition to declining profits, small businesses are also worried about inflation, interest rates and qualifying for a bank loan."
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