Bulk of small-biz owners to tap own assets to stay afloat

View from down in the trenches downright gloomy, survey finds
MAR 15, 2011
Most government and academic data indicate that the economy is on the mend. But you wouldn't know it by the mood of small-business owners, who appear increasingly pessimistic about the prospects for their companies, with many saying they will to dig into their own pockets in the next year to stay afloat. Not surprisingly, 77% of small-businesses owners surveyed by Discover Financial Services said they have taken a hit to their profitability over the last three years. What is surprising: Well over half say they're are still struggling to make a comeback. In fact, only 1% of those still going through rough times believe they are already experiencing recovery. What's more, two-thirds of the small-business owners said it is likely they will have to use personal assets to stay in business over the next year. Overall, 54% of the small-business owners said that the U.S. economy is getting worse. That's a big jump from February, when 41% believed that the economy was sliding. Their outlook on the direction of the economy and the climate for their businesses has been declining since January in the monthly survey. More than half of the survey respondents have rated the economy as poor for 19 consecutive months.

Latest News

Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.
Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.

In a constant fight over control of clients, the financial advice industry has a long history of such allegations and disputes.

Powering retirement for Wall Street
Powering retirement for Wall Street

Retirement fintech Vestwell has hit profitability and $200 million in annual recurring revenue, powering savings programs for 750,000 employers and Wall Street’s biggest firms

Advisor moves: LPL welcomes back RayJay advisor trio in Texas
Advisor moves: LPL welcomes back RayJay advisor trio in Texas

Meanwhile, &Partners has drawn another Wells Fargo team based in Missouri, while an experienced South Carolina advisor has returned to Cetera from LPL.

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains