Small Businesses Owners Feel Better About Overall Economic
Conditions
POLL: FEW BUSINESS OWNERS TAKE ACTIVE POLITICAL ROLE
Most Say Campaigns Haven't Created Forum for Their Issues,
Affordable Healthcare Still a Major Concern
RIVERWOODS, Ill.--(BUSINESS WIRE)--Aug. 25, 2008--Small business
owners' economic confidence rose for the second straight month in
August, climbing away from a 22-month low in June as their concerns
about the state of the overall economy improved. The Discover(R) Small
Business Watch(SM) reached 86.9 in August, up 2.3 points from July and
more than 15 points higher than June.
"We saw an increase in their confidence in the direction of the
overall economy, but that was offset by more owners saying they're
having cash flow issues," said Ryan Scully, director of Discover's
business credit card. "Their perceptions of the conditions for their
own businesses were flat, making this gain harder to pin down. There
is still a great amount of caution out there."
August Key Findings:
-- The number of owners who think the economy is getting worse
dropped to 60 percent from 71 percent in July. In addition, 23
percent of small business owners feel the U.S. economy is
getting better, which is the highest rating since August 2007.
-- 51 percent rate the economy as poor, a decrease from 54
percent in July; while 15 percent ranked it as good, up from
11 percent in July.
-- 42 percent say they have experienced cash flow issues over the
last 90 days, a significant increase from 33 percent in July
2008.
-- Perceptions of their own circumstances remained flat this
month: 30 percent of owners say economic conditions for their
business are getting better, up slightly from 28 percent in
July, while 44 percent say conditions are getting worse, up
just a point from 43 percent in July.
POLL: Three Out of Four Business Owners Don't Contribute to
Campaigns; More Than Half Think Election Provides No Forum for Their
Issues
As a segment, small business owners are not a politically active
group. Only about one quarter of all small business owners have
donated time or money to a candidate this year. And 75 percent said
they would never consider running for office.
Fifty-three percent of small business owners do not believe the
2008 election has provided a forum for small business owners to be
heard by the candidates while 33 percent said they weren't sure. Only
14 percent believe small business issues are being heard on the
campaign trail.
"It's not that surprising that small business owners are less apt
to get involved in the political process," Scully said. "They are so
fiercely independent and hard working that, for one, they don't have a
lot of leftover time or money to donate; and two, they don't have the
lobbying power in Congress that larger corporations do."
The economy continues to rank as the most important issue for
small business owners during this presidential election year.
Forty-three percent of owners believe that the economy is the number
one issue for this year's candidates, down slightly from the 47
percent who cited the economy as the most important issue in March
2008.
Other top issues that ranked a distant second include:
-- National Security at 11 percent, up 3 percent from March;
-- Healthcare at 10 percent, up 2 percent from March;
-- The War in Iraq at 10 percent, down 1 percent from March;
-- Government Ethics and Corruption at 10 percent, up 2 percent
from March; and
-- Immigration at 8 percent, down from 12 percent in March.
On the issues, healthcare remains a growing concern. Three out of
four small business owners, 72 percent, do not offer health care to
their employees. And it is apparently getting harder to find: 70
percent of owners say that finding affordable healthcare for
themselves and their employees is very or somewhat difficult, up from
69 percent in January 2008 and 67 percent in January 2007.
The views and opinions expressed by small business owners and
consumers who participate in the Small Business Watch survey are their
own and do not necessarily reflect those of Discover Financial
Services or its affiliates.
About the Small Business Watch
The Discover Small Business Watch is a monthly index measuring the
relative economic confidence of U.S. small business owners who employ
less than five employees, a segment that consists of 22 million
businesses producing more than a trillion dollars in annual receipts.
The Watch is based on a national random survey of 1,000 small business
owners. It is commissioned by the Discover Business Card, which
strives to offer the best business credit card for American small
businesses, and is conducted by Rasmussen Reports, LLC
(www.rasmussenreports.com), an independent survey research firm. The
numeric index is calculated by assigning values to responses to a set
of six consistent questions. The base value of the Watch was
established at 100.0 based on surveys conducted in August of 2006. In
addition to generating the index, the Small Business Watch surveys
small business viewpoints on key business drivers, and also surveys
4,000 consumers to gauge purchasing behavior and attitudes towards
small businesses. For past results and small business survey data,
visit www.discovercard.com/business/watch. For information on Discover
Business Card, visit www.discovercard.com/business.
About Discover Financial Services
Discover Financial Services (NYSE: DFS) is a leading credit card
issuer and electronic payment services company with one of the most
recognized brands in U.S. financial services. The company operates the
Discover Card, America's cash rewards pioneer. Since its inception in
1986, the company has become one of the largest card issuers in the
United States. Its payments businesses consist of the Discover
Network, with millions of merchant and cash access locations; PULSE,
one of the nation's leading ATM/debit networks; and Diners Club
International, a global payments network with acceptance in 185
countries and territories. For more information, visit
www.discoverfinancial.com.
CONTACT: Discover Financial Services
Jon Drummond, 224-405-1888
or
Robinson Lerer & Montgomery
Daniel Delson, 646-805-2036
SOURCE: Discover Financial Services