As per the latest survey conducted by Citibank on small business, vast majority of the owners are willing to run their business despite the recession. It is also remarkable to note that many owners have already made adjustments and plans in order to continue and enhance their business.
Going into the details of the survey, 86% of the small business owners are concerned about the double-dip recession that the economy might experience. But noticeably, 75% of them have already made necessary adjustments and plans, in their business and finances, indicating that they are prepared for the next down turn.
According to the statistics revealed by the Citibank, 68% of the owners have changed the way of running their business, with 64% of owners changing it forever. The major adjustments cited by the respondents in order to face the challenges are:
- Debt reduction (42%)
- Increasing cash reserves (40%)
- Hiring freezes (34%)
- Delaying plans for expansion (32%)
On asking, what are the factors which allowed them to run their business smoothly during the recession, the respondents listed:
- Client base/ relationship (62%)
- Effectively managing expenses (57%)
- Products and services which are recession proof (35%)
Survey reports also showed some of the plans, which the small business owners think would help them in improving or growing their business, such as:
- Longer working hours (61%)
- Extensive marketing (48%)
- Increasing employee productivity/ recruiting fewer employees (44%)
In addition to the above information, the survey reports also revealed some challenges which the respondents feel, would affect their businesses. They are:
- Higher taxes (48%)
- Declining demand for their products and services (43%)
- Tighter business regulations (40%)
- Costs of health insurance(40%)
- In spite of the challenging situations, the small business owners passion to run their business is unaffected and is confirmed by the below findings.
- 81% say that they love to run their own business, 75% (+4% from the previous survey, in March) of the owners are willing to start their business. In spite of the challenging situations, 59% want their children to take entrepreneurship as their career.