Survey: Small Business Owners Cut Back on Spending
More than one-third of small business owners said that their personal financial situation as a whole is getting worse, according to the recent Wells Fargo/Gallup Small Business Index survey. The survey also found that the sluggish economy is affecting small business owners' spending and savings habits.
Half of the business owners surveyed said they've postponed a major purchase in the past three months, and nearly as many (44 percent) said they've reduced the amount of money they've deposited into savings, checking or a CD. Thirty-one percent said they have reduced the amount they have contributed to a retirement account.
Small business owners also show concerns about not having enough money for the future. Seventy-five percent have concerns about paying for gas. More than half (51 percent) are worried they will not have enough money for the next 12 months' regular medical and dental expenses, and almost half (46 percent) fear they will not have enough money to pay for unforeseen medical emergencies.
For the last 20 quarters, the Wells Fargo/Gallup Small Business Index has surveyed small business owners on their current and future perceptions of the business environment. The quarterly surveys include timely hot topic questions relevant to small business owners.
Results are based on telephone interviews with 600 small business owners nationwide conducted April 2-16, 2008. The margin of sampling error is + 4 percentage points.
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