According to the latest Wells Fargo/Gallup Small Business Index which was conducted on telephone interview with 604 small business owners in all 50 United States between July 5-12, 2010, the concerns about credit availability have stabilized. Fewer U.S. small business owners expect revenues, cash flow, capital spending and hiring to increase over the next 12 months. In the survey’s index of business owner confidence, there was 17-point decline from April because of the lower expectations for business prospects, which finished at -28 the lowest score.

On Economic conditions
Down from 36 percent in April, the credit conditions improved in July with 32 percent of respondents reporting that credit was “somewhat” or “very difficult” to obtain over the past 12 months.

Cash Flow – Down from 42 percent in Q2 2010 (lowest point in survey history), 36 percent rated their cash flow as somewhat or very good for the past 12 months.

Major Future Expectations of Small Business

  • Revenues were down from 48 percent in Q2 2010, 38 percent expect their companies’ revenues to increase a lot or a little over the next 12 months.
  • Cash flow was down from 53 percent in Q2 2010 (lowest point in survey history), 43 percent expect their companies’ cash flow to increase.
  • Capital Spending was up from 29 percent in Q2 2010, 37 percent expect their companies’ allocation for capital spending to decrease a lot or a little over the next 12 months.
  • Hiring was down from 18 percent in Q2 2010, 13 percent expect the overall number of jobs at their companies to increase.


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