Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.
Still, a group of those surveyed did say they were rebounding from the past two years. Nearly 10 percent reported their business was already growing, up from 7 percent who said the same in December 2009. And according to the survey, there was a "notable decrease" in the number of small-business owners projecting decreases in revenues (down from 31 percent to 25 percent) from the year-end 2009 survey.
Here are more highlights from the survey, which can be found here:
- 73 percent of respondents cited economic uncertainty as the No. 1 challenge facing their business, followed by a decline in consumer spending, cost of health insurance benefits, federal taxes, and lack of available capital. (Read more about this in the distribution sector: 2Q Benchmarking Survey – Uncertainty Looms.)
- About 41 percent of small businesses surveyed for the report said they were unable to get adequate financing. (MDM/Baird Survey: Credit is Still Tight)
- Few small businesses (11 percent) hired new employees in the past 12 months and the net number of employers who cut jobs was 25 percent. Despite projections for the coming year faring better - a projected net increase of 5 percent - the majority projected no growth in their number of employees. (MDM/Baird Survey: Distributors Share Hiring Plans)
- Nearly half do not believe there will be any growth opportunities for their business in the coming year and well over one-third - 41 percent - have concerns about the ongoing viability of their business. The majority of small-business owners (59 percent) expect the overall U.S. economy to be flat in the coming year, and 29 percent expect a recession.