U.S. Small Business Outlook 2010: Lessons Learned From Forbes Insight

Small business owners learned to work smarter and do more with less in the past turbulent months of recession, reveals a survey from Forbes, in association with CIT.

According to the survey, 62% will invest more in marketing; specifically, lead generation and more than 60% will run their business more aggressively in 2010. While 50% of them said that they will hold on to their cash, 50% said will invest in growth or expansion.

Results of the survey:

  • Nearly seven out of ten (68%) disagreed that healthcare reform efforts would benefit their businesses
  • Nine out of ten small business owners agreed that current stimuli do not benefit small businesses
  • While 33% said they would likely reduce their hiring, 29% expected to hire more workers
  • 50% will
  • Nearly 8 out of 10 respondents agreed – coming out of the recession, the old way of doing business won’t work; we need to find new ways to take advantage of market opportunities
  • 79% say their market segment is more competitive than ever
  • 46% will pursue new revenue streams

Small business owners are, by definition, risk takers and will always welcome a challenge. The past 12-18 months have made business owners better leaders and more prudent decision makers.

However, the most telling quote from this study highlights the immense challenges ahead -“this ordeal has taken its toll on how small business owners see the economy in general. Only about one-fifth of respondents (21%) believe that the financial crisis has already bottomed out, with 47% expecting this to occur in 2010. They predict the financial markets will turn around in 2010/2011, stability will return in 2011/2012, and growth won’t come back until 2012 or later.”