Small Businesses Say Recession Remains

Some 78 percent of small businesses say that the United
States remains in a recession, according to the 2011
U.S. Bank Small Business Annual Survey
released by U.S. Bancorp June 23.

The bank noted that number is an improvement from 2010, when
89 percent of small businesses felt that America was still in a recession.

In addition, among those who say we are still in a downturn,
85 percent expect it will persist through next year.

When asked about the most significant challenge facing their
business today, 27 percent said economic uncertainty. “Poor sales” was the second
most common reason (16 percent), followed by federal regulations (12 percent),
competition (9 percent), and taxes (8 percent).  

Only 26 percent of businesses reported higher sales this year,
the survey said. Most (70 percent) expect to keep staffing levels intact over the
next 12 months, while 22 percent say they plan to hire.

“Small business owners are starting to see the recessionary
clouds part, but for many the recession remains,” said Rick Hartnack, vice
chairman and head of consumer and small business banking at U.S. Bank, in a
statement. 

JCK News Director