Resources for Entrepreneurs

Small Business Startup News

Cash Flow Issues Cause Drop In Small Business Confidence In June

Written by Jenna Weiner
Published: 6/29/2010

Small business owners are less optimistic about the economy due to continued cash flow problems.

A new survey of small business owners by Discover Small Business Watch found that continued cash flow problems have caused a dip in confidence over the last month.

Entrepreneur Getting Started

The index dropped from 87.4 in May to 86.1 in June. Just 29 percent of small business owners surveyed felt that the economy was getting better - bad news for entrepreneurs and a 6 percent drop since last month.

Cash flow problems were the biggest issue cited by small business owners. More than half of them said they were having cash flow issues, up from 46 percent in May.

"Many small business owners are working harder than ever to make payroll, pay their bills and keep their businesses running," said Ryan Scully, director of Discover's business credit card.

In response to reduced cash flow, 43 percent of companies said they would decrease their spending on advertising or other projects.

The cash flow issues cited by business owners reinforce the findings of a study by the National Federation of Independent Business earlier this month, which found that a lack of sales was the biggest problem facing small business owners, and not a lack of credit.

Have Friends Who Might Like This Article?

Tweet via @gaeblerdotcom Share this on Twitter

Let them know on LinkedIn

Ready to Learn More? We Think You Might Like These Articles:


About Our Breaking Entrepreneurial News

Our journalists cover all aspects of small business ownership. Our coverage is all about giving you news you can use to be a successful entrepreneur.

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities


Business Glossary