New York: Emerging from the challenges presented by the recessionary condition, more than half of the small and mid-sized businesses in the US expect an economic recovery in 2010, a survey says.
More than 58% of small business owners expect an economic turnaround in 2010, while 14% anticipate a rebound by the end of 2009 and rest 14% think the recovery would be in 2011 or later, as per the survey conducted by HR solutions provider Administaff.
The business confidence survey found that 83% of the business owners said their biggest concern for 2009 is economy, followed by 53% citing government healthcare reform.
Besides, about 44% said controlling operating costs is their concern while 33% said rising health-care costs are the other business worries, the survey, which was carried out across small and medium-sized businesses in the US, revealed.
“However, for 2010 and later, concern about the overall state of the economy fell to 36%, when the largest number of survey participants expressed a 55% tie-vote for being ‘ very concerned´ about both potential tax increases and the effect of government expansion on business, and 50% listed the federal deficit,” the report said.
Business houses are also anticipating an increase in sales and many of them said they would meet or exceed their 2009 performance plans.
On the pipeline for new business to balance the rest of the months in 2009, 41% responded said that they expect a sales increase, 35% predict it would stay the same, while only 15% anticipate decreasing sales and 9% weighed in as unsure.
In addition, 60% of the owners and managers of small and medium-sized businesses said that they are either meeting or exceeding their 2009 performance plans, with the remaining 40% reporting that they are doing worse than expected.
“Throughout America’s history, the entrepreneurial spirit has overcome obstacles and capitalised on opportunities, and our current economic setting is no exception,” Administaff chairman and chief executive officer Paul J. Sarvadi said.
“Small and medium-sized businesses are battling through the challenges of recession and appear to be preparing for recovery in 2010,” Sarvadi added.
The survey was conducted in July, 2009 among chief executive officers, chief financial officers and other executives in a variety of industries throughout the US.
According to the report, respondents said that they are continuing to be cautious in managing current staffing and compensation plans. About 60% of the people surveyed said they are maintaining current staffing levels, while 23% are adding new positions, layoffs were named by 16% as a current management strategy.
The report also revealed that majority of the participants expect to maintain employee compensation at current levels for the remainder of this year.