More small business owners and managers in the U.S. reported that they expect the economy to improve in the next 12 months as compared to the second quarter of 2008. In addition, 41% reported that economic conditions are their main concern, according to the latest Small Business Research Board (SBRB) study.

The quarterly nationwide SBRB study indicated that small business owners and managers throughout the U.S. reported higher levels of expectations for the next 12 months. 40% of the respondents indicated that they expect the economy to improve. This is a 12 point increase from the second quarter of 2008. Looking forward 12 months, 32% of the respondents expect revenues to remain the same and 42% predict their hiring rates to remain consistent. The fourth quarter poll was co-sponsored by IPA.

The poll also indicated that economic conditions have taken over as the top issue that owners and managers feel is currently having the greatest impact on their small businesses. 15% of respondents said that costs of materials were impacting their businesses; this is an increase of seven points over the previous report. As well, 15% of respondents said that taxes were impacting their businesses; this percentage remained consistent from the second quarter of 2008. Only 7% reported that fuel costs were impacting their businesses. This is a 19 point decrease from the last reported quarter. In the second quarter of 2008, energy/fuel costs tied with economic conditions as the top issues impacting businesses.

More than 500 owners and managers participated in the study.