Recession and the small business owner

If the recession is starting to bite into your business, you're not alone. According to the most recent Discover-Small Business Watch, the monthly index increased to 71.9 from last month's reading of 71.4. While this shows some stabilization from past months, the index remains near the bottom of its range since it was established in August 2006. The index is published every month and is based on the survey of 1,000 small businesses by Rasmussen Reports.

Of the small business owners surveyed, 54% say they expect conditions to worsen in the next 6 months. A year ago, only 34% expected conditions to worsen.

Given the poor reading on sentiment, it is not surprising that small business owners are reducing their expected level of investment in the coming months. Of those surveyed, 51% are planning to spend less on advertising, inventories and capital resources.