Discover Small Business Watch Index Tumbles
Discover reports that "few small business owners started out the year with confidence in the direction of the U.S. economy, according to the Discover Small Business Watch. The monthly index fell nearly 6½ points in January to 86.3, the second-largest point tumble in the 18-month existence of the poll. The index has been steadily decreasing since July, when it was 107.3."
Separately, Discover CEO David Nelms is presenting today at the Citi Financial Services Conference in New York.
“We have a significant increase this month in the number of small business owners who think the overall economy is getting worse,” said Sastry Rachakonda, director of Discover's business credit card. “Cash flow has dipped and spending on business development is down, which causes concern in this sector. However, the numbers that measure owners’ confidence in their own businesses have been fairly constant. It is too early to tell whether any of the proposed stimulus plans are affecting the mood of the small business segment of the economy.”
“Healthcare costs were having a big impact on businesses when we did this survey one year ago,” said Rachakonda. “This year’s survey shows that the situation has only worsened. Nearly four out of 10 entrepreneurs feel that healthcare costs have a major impact on their ability to grow.”
“Small business owners have to be flexible and resourceful to find health insurance for themselves and their families,” Rachakonda said. “But for those whose spouses don’t have health benefits, or for those who can’t afford to purchase a plan, they are simply going without.”
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