Dr Jeff Cornwall

The anecdotal evidence from my conversations with entrepreneurs shows a shift from panic to one of cautious hope — not optimism quite yet, but hopeful nonetheless.

The results of the latest American Express OPEN survey seem to support this perception.

The survey of small business owners designed to gauge sentiment and future plans reveals entrepreneurial fear and uncertainty bottomed out in October in the wake of a stock market slide that included a one-day 777-point decline. Hiring remains at historically low levels, however, with only 17% indicating plans to hire full- or part-time staff.

According to the survey – which looked at perceptions of the economy, cash flow, hiring, access to credit, government economic intervention including the proposed stimulus package, and the entrepreneurial mindset – fewer small business owners are worried about going out of business and more expect to grow their businesses regardless of the economic climate than in October.

Other results include:

• Fewer businesses have been affected by the tightening of credit (50% in August 08, 63% in October 08 and 56% in January 09)
• Fewer businesses are accepting lower profit margins (56% in August 08, 58% in October 08 and 46% in January 09)
• Fewer business owners are stressed out over the state of the economy (55% in February 08, 71% in August 08 and 66% in January 09)
• It is taking longer for small business owners to get paid (27% in February 08 versus 36% in January 09)
• Small business owners are more averse to risk now than they were twelve to 18 months ago (75% indicated this was true)
• Two-thirds of small business owners (68%) agree with the statement, “The independence and control I was seeking when I started my own business is threatened by economic forces out of my control”
• Four in five small business owners agree with the statement, “Even in these turbulent economic times, the rewards and opportunities of running my own business outweigh the risks and challenge