Small Business Digest Announces Results of 2010 Annual Survey: Investment and Staffing Reductions
Sausalito, CA, February 05, 2010 --(PR.com)-- Small Business Digest recently announced the overall trends revealed in the results of the Information Strategies, Inc.(ISI) 2010 outlook study. "Small business owners see a bleak picture for 2010 and are hoarding cash, reducing payrolls and generally pulling in their horns," says a spokesperson for Small Business Digest.
A concern for those hoping for an economic recovery was the finding that 27% of responders plan to replace only those staffers who left while one in five (21%) said they were reducing staff.
These figures are up 10 percentage points from last year’s survey.
Small businesses generate four out of every five new jobs in the US and this trend, if mimicked by other small firms would indicate a slow return to full Employment; This trend surfaced for the first time since ISI began conducting this annual survey in 2004.
According to JoAnn Laing, ISI’s Chairperson, said the company has not seen such pessimism as reveal in this year’s responses:
- More than 400 businesses ranging in size from 3 employees to 240 staff members were represented in the sampling.
- ISI supplements the survey with focus groups where the trends were also reflected and reinforced in the sessions.
- While a majority (52%) expected their business sector to improve, only 21% thought their company sales and profits would increase.
- One in five respondents thought their sales and profits would decrease this year.
- This pessimism was reflected in responses to detailed questions about staffing and expenditures.
- For the first time in six years, almost half of the respondents said they were reducing debt load (49%) and increasing their cash position (27%). Both of these figures were up by 20 percentage points from last year’s survey.
- Hardest hit are expected to be employee benefits, technology investment, property, plant equipment and in rent and real estate.
- On the plus side, a plurality (39%) reported that they expected to spend more on sales, marketing and advertising.
- Interestingly, travel expenditures were also expected to be up with the expectation that more personal contact for sales purposes was needed.
- At the same time, 52% of respondents said they were shifting print promotional funds into Internet venues.
Each year, ISI asks small business leaders to identify the companies they think do the best job of servicing smaller enterprises.
Staples, Mastercard, American Express and Fedex led the pack.
For more details about this survey, visit www.2sbdigest.com
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A concern for those hoping for an economic recovery was the finding that 27% of responders plan to replace only those staffers who left while one in five (21%) said they were reducing staff.
These figures are up 10 percentage points from last year’s survey.
Small businesses generate four out of every five new jobs in the US and this trend, if mimicked by other small firms would indicate a slow return to full Employment; This trend surfaced for the first time since ISI began conducting this annual survey in 2004.
According to JoAnn Laing, ISI’s Chairperson, said the company has not seen such pessimism as reveal in this year’s responses:
- More than 400 businesses ranging in size from 3 employees to 240 staff members were represented in the sampling.
- ISI supplements the survey with focus groups where the trends were also reflected and reinforced in the sessions.
- While a majority (52%) expected their business sector to improve, only 21% thought their company sales and profits would increase.
- One in five respondents thought their sales and profits would decrease this year.
- This pessimism was reflected in responses to detailed questions about staffing and expenditures.
- For the first time in six years, almost half of the respondents said they were reducing debt load (49%) and increasing their cash position (27%). Both of these figures were up by 20 percentage points from last year’s survey.
- Hardest hit are expected to be employee benefits, technology investment, property, plant equipment and in rent and real estate.
- On the plus side, a plurality (39%) reported that they expected to spend more on sales, marketing and advertising.
- Interestingly, travel expenditures were also expected to be up with the expectation that more personal contact for sales purposes was needed.
- At the same time, 52% of respondents said they were shifting print promotional funds into Internet venues.
Each year, ISI asks small business leaders to identify the companies they think do the best job of servicing smaller enterprises.
Staples, Mastercard, American Express and Fedex led the pack.
For more details about this survey, visit www.2sbdigest.com
###
Contact
Small Business Digest
Donald Mazzella
(415) 289-3290
www.2sbdigest.com
Donald Mazzella
(415) 289-3290
www.2sbdigest.com
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