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Small Businesses Feeling the Pinch posted on December 10, 2008

How’s the economy treating small businesses?

By Jon Hindman

The economic woes brought on by decreased sales, difficulties accessing credit and rising health care costs and gas prices have affected large companies throughout the nation but, no surprise, small and mid-size companies—particularly the small guys—are struggling greatly to stay the course and, at times, even stay afloat.

In fact, a recent survey conducted by the United States Federation of Small Business (USFSB) and Conn.–based DYMO reveals that 95% of small- and medium-size business owners feel that their small business community has been challenged. And, additionally, more than 55% of those surveyed report their own personal business as being “down.”

Clearly, as economic troubles continue, business owners are looking for ways to cut back and ways to increase efficiency from their valued employees. This is evidenced by other telling stats from the survey, which are as follows:

* Less than a quarter (23%) of respondents have cut staff

* More than a third (36%) of respondents have decreased business travel

* More than a third (36%) of respondents have minimized marketing efforts

* About a third (29%) of respondents have put a freeze on bonuses and raises

* Nearly half (45%) are looking for ways to increase productivity, often through new technologies

In concluding the report, the USFSB recommends that there are many new technologies designed for small to medium-size businesses that can greatly increase productivity. Technology, says the USFSB, can really help many of those businesses get over this economic hump. But still, a lot of tough, hard-nosed business decisions will continue to be made over the coming months until the light at the end of the tunnel is visible.