Economic Key Findings:
- 94 percent said they feel they are either very (66 percent) or somewhat (28 percent) responsible for the nation’s economic recovery.
- 90 percent are concerned about the possibility of a double-dip recession.
- 79 percent are prepared if the economy were to experience another downturn.
- 78 percent plan to keep the same number of employees, while 17 percent plan to increase in the next year, and only 5 percent foresee the need to reduce.
- 30 percent plan to hire temporary or part-time workers instead of full-time employees.
As small business owners look back over the past few years, they share that the biggest challenges of owning/running their business have been:
- Taxes, insurance and/or benefit costs (65 percent)
- Declines in sales/poor economic conditions (61 percent)
- Personal stress/being accountable for everything/everyone (60 percent).
The American Dream
Despite the challenging environment, the majority of small business owners (64%) say they are living the American Dream.
- 83 percent said owning a small business helps them fulfill the American Dream
- For small business owners, living the American Dream also means being able to afford the lifestyle they want (73 percent) and being able to save and plan for the future (72 percent).
- 77 percent cited “being their own boss” as the key benefit to being a small business owner.
Looking Ahead: The Rest of 2011 and 2012 Outlook
As small business owners look to the future months and 2012, 50 percent say it will be “steady as she goes – continuing much as we are now” for the holiday season.
In an effort to improve or grow their business in 2012, small business owners plan to:
- Increase their marketing efforts (61 percent)
- Get better pricing from suppliers, vendors or landlords (58 percent)
- Introduce new products and services (56 percent)
- Work longer hours (45 percent).
Looking forward to 2012, topping the list of most important issues for their business:
- Consumer confidence (64 percent)
- Maintaining or increasing sales (63 percent)
- Taxes and/or government regulation (62 percent).
As small business owners plan for 2012, they are likely to increase:
- Use of their website to drive business (62 percent)
- Marketing using social networking sites (41 percent)
- Use of email marketing (40 percent).
“The results of this current Citibank Small Business Survey are consistent with what we’re seeing and hearing from our clients, in that they are being thoughtful and prudent in their planning,” Seshadri continued. “At the same time, you can also see how innovative they are in how and where they are looking for growth opportunities, which really demonstrates the type of entrepreneurial spirit we need to help drive our economy in the right direction.”