Sunovis Financial Reports on the Results of the Fall American Express OPEN Small Business Monitor

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The bi-annual American Express OPEN Small Business Monitor was released in October. The survey has drawn the interest of Sunovis Financial, who assists small businesses, for its claims of small businesses using credit cards, lines of credit and personal asset to address cash flow issues. Overall, the survey paints a picture of business owners who are doing whatever necessary to remain competitive and profitable.

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The fact that they are not planning on growth does not mean that small business owners are becoming complacent. Social media is one way that 28 percent of those surveyed are using to increase business and customer loyalty.

The American Express OPEN Small Business Monitor is published twice a year, once in the spring and once in the fall. The fall survey results were released in October and they show continuing pessimism and a can do attitude among the over 800 small business owners surveyed.

While the National Bureau of Economic Research claims that the Great Recession of 2008 has ended, small business owners are not as sanguine. Close to 40 percent of small business owners surveyed feel we are still in the grips of the recession. This is down from the 44 percent who felt that way in the fall of 2011, though much of this sentiment could be due to the adaptations small business owners have made in the past year.

Small business owners have become “more calculating and measured in how they run their firms,” according to Susan Sabbott, president of American Express OPEN. “When cash is tight, they pull back on spending or look for creative ways to access capital; when plans for growth are unrealistic, they put them on hold until the time is more prudent.”

Less than 35 percent of the owners surveyed anticipate any growth for their business over the next 6 months, and that includes putting any hiring plans on hold. Rather, they have been focused on employee retention through increased flex time, improved health care benefits and a variety of other morale boosting moves.

The fact that they are not planning on growth does not mean that small business owners are becoming complacent. Instead they are taking other steps to remain competitive in the weak economy. Social media is one way that 28 percent of those surveyed are using to increase business and customer loyalty.

With financing and cash flow a constant concern, the survey found that many small business owners and managers are increasingly turning to charge cards, lines of credit, and private assets. It is this unconventional financing that drew the attention of Sunovis Financial to the survey. Sunovis Financial assists small businesses with lending needs, including SBA loans. The Lending Circle, a division of Sunovis Financial, finds non-SBA solutions for small businesses, including alternative financing sources.

In general, small business owners are weathering the recessionary storm by making smart decisions regarding their business. While they are not as optimistic about the future as they were in the spring (85% in the spring versus 77% now), they are doing whatever is necessary to remain competitive and profitable.

About Sunovis Financial
We help small businesses compete and succeed in today’s difficult world through suitable financing channels. The company mission is to help rebuild the US economy, one business and one loan at a time.

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Kathy Heshelow
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