Small Businesses Face Uphill Year Without Access to Credit Union Loans

by Credit Unions Online

by Gina Ragusa

Key findings from a mid-2012 survey by PNC Bank point to another year of soft profits for small businesses due to a variety of factors, including continued uncertainty surrounding the economy.

The October 2012 survey found that although a growing number of business owners are more optimistic today about increased profits and sales, the majority are still cautious about what is in store for 2013. Important revelations include:

  • Six out of 10 U.S. small to medium sized companies are looking to reduce overhead within labor forces over the next six months.
  • Approximately 50% of survey respondents were pessimistic about U.S. economy prospects in the next six months (down from 71% last spring).
  • Four in 10 business owners expect sales to increase in the coming months.
  • Approximately 52% have no plans for capital spending anytime soon.
  • Only 19% plan to pursue a new loan or line of credit over the next six months.
  • Prices will remain the same as only 22% plan to make any increases as few believe market conditions will permit a price rise.

One telltale indicator of how business owners are feeling was the question about the general economy. An astounding 96% believe the economy has not shown improvement with 49% saying recovery is more than a year away.

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