Tuesday, August 21, 2012

Capital One Small Business Survey: Confidence Holding Steady

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Capital One Small Business Survey

Small businesses continue to show improvements, remain steady, but express concerns for remainder of the year, according to second quarter 2012 survey data.

MCLEAN, Va. - (BUSINESS WIRE) - August 21, 2012 - Small businesses across the country are reporting generally modest but steady improvement in their finances, according to Capital One’s second quarter 2012 Small Business Barometer, a quarterly survey of small businesses across the nation examining general economic indicators and small business perceptions of the economic environment, gauging current financial conditions and business projections for the next six months. Looking back over the past year, the survey results indicate that small businesses continue to show signs of improvement. Small businesses started the year off on more solid footing in the first quarter of 2012 and the initial gains over 2011 have remained consistent, even showing some improvement in the second quarter of the year. On the hiring front, the survey found a two-year high in the percentage of small businesses planning to add jobs over the next six month, with 37 percent reporting plans to hire.

The majority of small businesses report that their business financials have remained stable or improved, with 44 percent reporting improved financial position compared to one year ago. However, small business perceptions regarding local economic conditions remain relatively unchanged and, despite the improvement in company financials, the data shows small business owners are less optimistic about business prospects in the months ahead. The national business outlook indicates that concerns over sales and price margins, have diminished small business confidence in their prospects for the remainder of 2012.

“This quarter’s survey results suggest that business is generally holding steady for small businesses; the current economic environment and overall business performance continue to hold their own or improve, and while hiring is far short of pre-recession levels, we’re seeing small businesses making plans to hire new employees in numbers that are among the highest we’ve seen in the past two years,” said Jon Witter, President, Retail and Direct Banking at Capital One. “Though these are promising signs, as we look forward, we’re also seeing some hesitancy and concern about prospects for the remainder of the year, as well as a limited line of sight to growth – demonstrating small business owners are moving forward with continued caution and pragmatism as they consider their plans and projections for the coming months.”

Capital One Bank Quarterly Small Business Barometer Survey Finds Small Business Confidence Holding Steady

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