Owners Feel Better About Conditions for Their Businesses, Fewer
Think Overall Economy Is Getting Worse
POLL: SMALL BUSINESS PEOPLE OUTWORK MOST AMERICANS
Even On Vacation, More Business Owners Stay Connected, Spend Less
Time Away
RIVERWOODS, Ill.--(BUSINESS WIRE)--May 27, 2008--Small business
owners halted a steady decline in their economic confidence in May as
the number of those with cash flow issues decreased to its lowest
total in six months. The Discover(R) Small Business Watch(SM) rose
more than five and a half points in May to 81.8, up from 76.1 in
April.
"Cash flow is such a key indicator, that whenever business owners
tell us cash issues have improved, we expect to see a rise in
confidence," said Ryan Scully, director of Discover's business credit
card. "Together with improved confidence in economic conditions for
their own businesses, cash flow issues will be a good barometer of
whether this rise in economic confidence is a trend, or just another
blip in what has been a downward pattern for almost a full year."
May Key Findings:
- 28 percent of owners say that economic conditions for their
business are getting better, an increase over 24 percent in
April.
- 71 percent of small business owners think the U.S. economy is
getting worse, a decrease from 76 percent in April.
- 39 percent say they have experienced cash flow issues over the
last 90 days, a decrease from 44 percent in April and 47
percent in March.
Poll: Owners Work More Than Most People, Stay Connected Via E-mail
Overall, small business owners are spending more hours per day and
more days per week on the job than the rest of the population. Clearly
45 percent of small business owners work six or seven days a week,
more than twice the 19 percent of the general population who have a
similar schedule.
The state of the economy hasn't helped, either. One in 4 small
business owners said they are working more hours because of the
economic downturn, with 55 percent working the same number of hours.
"The flexibility and independence that is so precious to this
segment is even more important in light of the time business owners
spend on the job," Scully said. "They depend on their customers and
clients, so staying connected to the business nearly round the clock
is all part of the process."
Even when they are away, small business owners often stay in touch
with the office: 40 percent admit to carrying a wireless email device
to keep in touch with their business, customer and clients when taking
time off of work. Luckily, their spouses usually understand.
Fifty-three percent of owners say their spouse approves of them
checking business email on their days off or during vacation, but
patience may be running thin. That percentage is down from 55 percent
a year ago.
More Work Survey Highlights:
- 59 percent of small business owners define a "day off" as
being available for calls and emails, working some time or
even working all day at a remote location. Only 31 percent of
the general population feels the same.
- 23 percent of owners have not taken a planned vacation that
lasted at least a week in more than four years.
- 25 percent of owners indicated they work 10 to 12 hours per
day, compared to 15 percent of the general population who say
they work that much.
- On official holidays, 47 percent say they are at work "always"
or "most of the time."
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, and
PULSE, one of the nation's leading ATM/debit networks. 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