The latest small business study from The Hartford reveals that small business owners are becoming increasingly more conservative with their risk taking endeavor.
The Hartford’s Small Business Pulse, a study on 1,000 small business owners, shows some interesting findings, most notably the tendency for them to playing it safer with their business decision making. The number is rising from 49 percent on Spring 2012 to 80 percent on Spring 2013.
In other areas, the trend also follows suit, giving a general impression that small business owners are cautiously optimistic, and they embrace local business community more than see things nationally.
I am successful!
Optimistic environment will continue to make an impact on small business owners: 73 percent of the respondents confess that they feel successful. This is, again, a good indicator to reflect the readiness for small business owners to hustle for their businesses.
Economic outlook: Local > National
In general, small business owners are optimistic about the U.S. economy. 47 percent of respondents feel optimistic that the national economy will continue to be stronger in 2013.
Interestingly, most small business owners think that their local economy performs better than the national economy. 44 percent of survey respondents say that they feel more optimistic about the local economy than the national economy (23 percent say the otherwise and 33 percent say neither.)
Major risks are down – whew!
Small biz owners say that the top three major risks to their businesses are dropping quite significantly, this Spring 2013 compared to Fall 2012: Slow economic growth fear has dropped to 52 percent from 67 percent; health care costs worries were down to 44 percent from 53 percent; taxes anxiety was dropped to 40 percent from 59 percent.
Hiring is stagnant: Overly cautious?
Small biz owners mentioned that they have not hired or have not hired as much as they would have liked in the past year (68 percent have not hired in 2012 and 63 percent don’t plan to hire in 2014.) How so? The biggest reason (47 percent) is due to the limited budget they have to hire a helper for their business
You can see things clearer in picture – here’s the infographic which visualizes some interesting findings (click on the infographic for a larger version.)
Takeaway
It seems that small business owners are becoming more resilient and forward thinking. However, they are increasingly becoming more careful, as in today’s uncertain economy, things can go from good to bad at a blink of an eye.
With tight budget – reflected in their hiring policies – they doesn’t give them a room to wiggle, they need to think more before they make any decisions.
You can learn more about The Hartford’s 2013 Small Business Pulse small business study from their official page.
Photo credit: Camdiluv ♥ via photopin cc
