Survey: Economy Has Business Owners Feeling Pressure

Small-business owners' optimism is at its lowest point in at least six years, amid problems with cash flow, growing accounts receivable and rising gas-and-energy costs.

Only 45 percent of entrepreneurs surveyed recently responded with a positive outlook, and just 9 percent expected the economy to improve during the next six months, according to a semi-annual survey by American Express Co.'s small-business service, which polled 627 business owners and managers.

Despite the economic uncertainty, seven in 10 business owners said they plan to expand during the next six months. Still, there are red flags: 56 percent of those surveyed said they're experiencing cash-flow problems, compared with 46 percent last spring. And 24 percent said their accounts receivable are too high.

A second survey released this month confirms the anxiety felt by business owners: While expressing confidence in their own operations, 45 percent of those included in the 2008 National Small Business Association Survey of Small and Mid-Sized Business said they expect a recession in the next year.

Those responding to the association's survey also said they were worried about the cost of health insurance and the lack of available capital. Fifty-five percent said they had trouble securing credit during the past year.

"Small businesses are buckling down, with nearly a quarter reporting no-growth strategies planned for the coming year," Chairwoman Marilyn Landis said.

But being your own boss can't be too bad: The American Express survey found that 75 percent of the small-business owners would recommend entrepreneurship to a friend or family member.


Cup of recognition

Mayor Buddy Dyer tipped his hat to local entrepreneurs last week, proclaiming April 21-25 Small Business Week in Orlando. Christina Cowherd, owner of Infusion Tea, was on hand to represent local business owners along with her husband, Brad, the company's vice president.

Infusion Tea, a vegetarian tea house that sells organic teas, has 24 employees and two locations, in the city's College Park and Thornton Park sections. The business launched in 2004, after the Cowherds finished a tour with the Peace Corps in Guatemala.

While they were overseas, Christina -- health club a former technical writer -- decided she didn't want to return to a desk job. Brad joined his wife when the business blossomed.

"Anything that the city can do to make it easier for small businesses to actually conduct business in the city of Orlando is a good thing," Brad Cowherd said.

During the presentation, the city recognized small businesses for creating jobs and opportunities within the city, health club and honored small-business service organizations such as the Hispanic Business Initiative Fund, the Black Business Investment Fund, the Minority/Women Business Enterprise Alliance, SCORE Orlando, and the Disney Entrepreneur Center.