Capital One says Small Businesses Conditions Improving
April 7, 2010
On Tuesday, Capital One Small Business Banking released results of a recent survey involving small businesses throughout the US. They gauged their financial conditions and business projections for the next 6 months. According to the results, about 26% of business owners say their conditions have improved, while 28% say their financial position is better now than this time last year. This is despite around 47% saying that their company’s condition in the economy is staying about the same.
When asked about capital, 78% of the companies surveyed said they have access to what they need financially and credit-wise. However, a majority of small businesses say they don’t plan on making any major investments in the near future. Furthermore, only 28% plan to hire more workers, while 46% aren’t planning to make any additional investments or expenditures.
Robert M. Kottler, the Capital One Small Business Banking executive vice president, said that small businesses in the US were impacted the most when the recession started. However, the results of their survey suggest that they are beginning to see some stabilization, he continued. Many small businesses’ financial conditions are staying about the same, Kottler said, adding that capital being more accessible and the economy starting to stabilize are reasons to optimistically and cautiously look to the future.
Although small businesses are seeing improvements, many owners are still facing challenges. About 58% of the survey’s participants said that their biggest obstacle will be getting new customers over the next half year. However, 37% think they will have a harder time holding onto existing customers. Another 25% believe their biggest challenge will be identifying new revenue streams.
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