By Sheryl Jean, The Dallas Morning News
Apr. 14--Two surveys released on Tuesday show differing levels of optimism from small business owners about their companies and the economy.
Small business optimism fell again in March, dropping 1.6 points to the second-lowest level in the survey's 35-year history, according to the National Federation of Independent Business Small Business Optimism Index.
"There are signs that the economy is bottoming in the reports of sales, housing starts and auto purchases, but they were not strong enough in March to lift the spirits of small business owners," said NFIB chief economist William Dunkelberg. The index has fallen for the past four months.
The more than 800 small business owners surveyed remain skeptical and are not willing to spend more or hire until they see more customers, according to the index. Its measurements of spending and hiring plans reached a record low, with a net negative 10 percent of owners planning to add jobs in the next three months. Expectations of sales gains fell to a net negative 31 percent, the worst level in survey history.
Although small businesses are having a tough time, the second annual national small business survey by Dallas-based FedEx Office (formerly FedEx Kinko's) found that they remain confident and optimistic in their long-term outlook.
More than half of the 500 business owners surveyed online in February were very concerned about the economy's effect on their business, up from 40 percent in 2008.
Seventy percent said the drop in consumer spending hurt profits. Of those, more than a third saw their 2008 profits fall by more than 25 percent from 2007 and nearly three-quarters expect flat or declining profits this year.
Despite concerns, 75 percent in the FedEx Office poll were confident they'd be open a year from now and 46 percent said they would open another business today if they had the financial backing.
"Many small businesses are cautiously optimistic, and that is a positive sign that Main Street can emerge from this downturn," said Brian Philips, chief executive of FedEx Office.
The FedEx Office survey found that more small businesses plan to invest in themselves: 47 percent plan to increase marketing and advertising spending this year, up from 38 percent in 2008.
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