Ninety percent of small-business owners report they're concerned about a double-dip recession, but 79 percent say they're prepared if the economy takes a turn for the worse, according to a Citibank small-business survey released Tuesday. Meanwhile, 49 percent of the business owners say they are holding their own and poised to grow when the economy recovers, and 28 percent of the businesses report they are already in growth mode.
"The reality is that there is uncertainty in the economic environment, in terms of taxes, benefits and health care costs," Raj Seshadri, head of small-business banking at Citibank, said in a statement. "They know it's a longer recovery and there are no magic bullets. However, they feel they are very well prepared and are holding their own."
Small-business owners also feel accountable for the economic recovery, according to the survey, with 66 percent who feel very responsible for the recovery and 28 percent who feel somewhat responsible. That belief may be adding pressure to business owners, as 60 percent report the biggest challenge they've faced in the past few years is personal stress from being accountable for everything and everyone. That challenge ranked third, after taxes, insurance and/or benefit costs (65 percent), and declines in sales and poor economic conditions (61 percent).
Still, the random sample of 1,000 small-business owners nationwide with fewer than 100 employees and more than $100,000 in revenues are maintaining a positive attitude, with 64 percent saying they are living the American Dream. As far as whether President Obama's job speech on Thursday will help or hurt that attitude, Seshadri said, "Business owners are saying they are concerned with the uncertainty about insurance, health care and benefit costs. Anything to mitigate that uncertainty will help them plan, and that is welcome."