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

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.