Survey reports small businesses are in jeopardy

A survey sent to 850 small business owners shows that nearly half of them feel their business is in jeopardy, with 56% saying the current credit crunch has adversely impacted their business.

Park Ridge, Ill. — A survey was conducted regarding the concerns of small business owners throughout the United States by George S. May Intl., a management consulting firm. The survey was sent to 850 small business owners and results show that nearly half of them feel their business is in jeopardy, with 56% saying the current credit crunch has adversely impacted their business.

Twenty-three percent of survey respondents cited that late-paying customers and vendors have impacted their business, 14% said their lines of credit were being pulled and 9% said they were having difficulty making payroll. Twenty-three percent of small business owners said late paying customers, credit lines and making payroll have all impacted their business, plus, 31% noted that other business conditions have also affected their business.

The survey also notes that 59% of small business owners feel the federal bailout of $700 billion will not help their business while 41% said they feel it would.

“Small business owners are concerned about jobs, having access to credit lines to keep their operations going, healthcare costs for their employees and taxes,” said Israel Kushnir, president of George S. May Intl. “Small businesses across America don't feel that there is a $700 billion bailout for them.”

Of the respondents that said they are being impacted by the credit crunch, 13% said they have had to dip into their retirement savings, 11% said they have had to use personal savings, 11% said they have had to use credit cards to help keep the business going and 38% said they are waiting out this economic turmoil, and — in the meantime — going into debt. Twenty-seven percent of respondents said they were exploring other ways to handle the financial problems facing their business.