Sageworks, in a survey of 10,000 banks and small business CPAs, reports that small company’s sales reduced by 3.8% for this year to the end of October. They had a sales increase of 2.4% in 2008.
Large firms were better off with an average fall in sales of only 1.8% for the same period this year.
Certain small business sectors fared worse than others in sales reductions, transport and storage fell 16.7%, manufacturing fell 13.8%, wholesalers fell 10.4% and retailers fell 6.7%.
The National Federation of Independent Businesses reports that 86% of small businesses had flat or reduced earnings over the last three months and 82% had level or lower sales in that period. In the next three months, 21% plan to reduce staff and 32% will reduce stock levels.
From 1993 to 2008, US small businesses provided 65% of job growth and they account for approximately 50% of non government employment, so their recovery will determine the improvement in the current high unemployment rate.
The weak US dollar has hurt small firms who import raw materials and there is little upside in this for them since most do not export. The housing crisis has also created problems for building contractors which are mostly small companies.
Tight credit has meant that many small business owners have used credit cards to finance their operations and many lenders are now reducing credit limits.
So small firms are still having difficulties which have been produced by the economic downturn and Government assistance doesn’t seem to be getting to them.
We help by providing prospects to them at no cost from our Local Search facility in our US Business Directory. The majority of the 10 million firms listed in our directory are small businesses.
Monte Huebsch, CEO
Large firms were better off with an average fall in sales of only 1.8% for the same period this year.
Certain small business sectors fared worse than others in sales reductions, transport and storage fell 16.7%, manufacturing fell 13.8%, wholesalers fell 10.4% and retailers fell 6.7%.
The National Federation of Independent Businesses reports that 86% of small businesses had flat or reduced earnings over the last three months and 82% had level or lower sales in that period. In the next three months, 21% plan to reduce staff and 32% will reduce stock levels.
From 1993 to 2008, US small businesses provided 65% of job growth and they account for approximately 50% of non government employment, so their recovery will determine the improvement in the current high unemployment rate.
The weak US dollar has hurt small firms who import raw materials and there is little upside in this for them since most do not export. The housing crisis has also created problems for building contractors which are mostly small companies.
Tight credit has meant that many small business owners have used credit cards to finance their operations and many lenders are now reducing credit limits.
So small firms are still having difficulties which have been produced by the economic downturn and Government assistance doesn’t seem to be getting to them.
We help by providing prospects to them at no cost from our Local Search facility in our US Business Directory. The majority of the 10 million firms listed in our directory are small businesses.
Monte Huebsch, CEO
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