Small business - next leg down?

AGA7d

Meaning more job-loss ahead.
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http://jan.freedomblogging.com/2009/11/30/26519/26519/

November 30th, 2009, 6:00 am · posted by Jan Norman, small-business columnist

Small-business owners’ confidence in the economy plunged in November after holding steady for three months, over-cliff-230-172according to the Discover Small Business Watch released today.

Owners are especially pessimistic about the economy and their business:

    * 62% rate the economy as poor,  compared to 55% in October
    * 19% say economic conditions for their individual  business is better, compared to 29% in October
    * 52% have experienced cash flow issues in the past 90 days, compared to 44% in October

The monthly survey measures owners’ confidence in such issues as the condition of the economy, business growth and spending. In November, the combined index is 76.5 compared to 88.5 in October. The benchmark is August 2006 when Discover started the Small Business Watch.

Owners confidence is flagging even though some economic signals have improved. The consumer and producer price indices and employment costs all increased moderately year-over-year in October, the latest report. Job losses continue to increase but at about half the rate as earlier in 2009.

But Dun & Bradstreet reports many companies are slow in paying their bills. In the Discover survey, just one in four respondents extends credit to customers but among those, 73% said customers had delayed or asked to delay a payment.

These small businesses won’t be helping the job picture much. Just 7% plan to hire more workers in the next few months vs. 15% that will lay off workers. And 19% will increase spending for inventory, advertising or major capital needs vs. 53% that will cut such spending