Emerging from the challenges presented by the recessionary condition, more than half of the small and mid-sized businesses in the US expects an economic recovery in 2010, a survey says.
More than 58 per cent of small business owners expect an economic turnaround in 2010, while 14 per cent anticipate a rebound by the end of 2009 and rest 14 per cent think the recovery would be in 2011 or later, as per the survey conducted by HR solutions provider Administaff.
The business confidence survey found that 83 per cent of the business owners said their biggest concern for 2009 is economy, followed by 53 per cent citing government healthcare reform.
Besides, about 44 per cent said controlling operating costs is their concern while 33 per cent said rising health-care costs are the other business worries, the survey, which was carried out across small and medium-sized businesses in the US, revealed.
"However, for 2010 and later, concern about the overall state of the economy fell to 36 per cent, when the largest number of survey participants expressed a 55 per cent tie-vote for being ' very concerned' about both potential tax increases and the effect of government expansion on business, and 50 per cent listed the federal deficit," the report said.
Business houses are also anticipating an increase in sales and many of them said they would meet or exceed their 2009 performance plans.
On the pipeline for new business to balance the rest of the months in 2009, 41 per cent responded said that they expect a sales increase, 35 per cent predicts it would stay the same, while only 15 per cent anticipates decreasing sales and 9 per cent weighed in as unsure.
In addition, 60 per cent of the owners and managers of small and medium-sized businesses said that they are either meeting or exceeding their 2009 performance plans, with the remaining 40 per cent reporting that they are doing worse than expected.
"Throughout US history, the entrepreneurial spirit has overcome obstacles and capitalised on opportunities, and our current economic setting is no exception," Administaff chairman and chief executive officer Paul J Sarvadi said.
"Small and medium-sized businesses are battling through the challenges of recession and appear to be preparing for recovery in 2010," Sarvadi added.
The survey was conducted in July, 20009 among chief executive officers, chief financial officers and other executives in a variety of industries throughout the US.
According to the report, respondents said that they are continuing to be cautious in managing current staffing and compensation plans. About 60 per cent of the people surveyed said they are maintaining current staffing levels, while 23 per cent are adding new positions, layoffs were named by 16 per cent as a current management strategy.
The report also revealed that majority of the participants expect to maintain employee compensation at current levels for the remainder of this year.
