Small Businesses at Risk

10/30/2008

Almost 20 percent of small businesses are in jeopardy of closing due to the down economy, according to a new survey from American Express OPEN.

The company’s president, Susan Sobbott, says entrepreneurs are decreasing investments, limiting expansion plans, cutting expenses and focusing on adapting to customer demand, ASI central reports.

Amex attributes the threat on small businesses to a lack of available credit, and about 66 percent of small business owners say the credit crunch has affected their company, compared with only 50 percent who said so in August.

A few more telling facts:

• More than one in 10 small businesses has had to lay off employees
• Most survey respondents have had to use personal funds to pay off expenses
• The vast majority are reporting decreased sales
• One-third of small business owners are raising prices to make up for slower sales — down from 48 percent in August
• 71 percent of respondents are feeling stress about the economy

Source:ASI Central: Survey: More Companies At Risk Of Going Out Of Business