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June 02, 2010

Small business outlook

Small businesses employ almost half the workers in the country. Often small businesses are moving in a different direction than large firms, so it is important to periodically take the pulse of small companies. How is that pulse beating now?

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"I think a little better ... based on the recent reports we have from small business. One measure of small business optimism was up in April from a recession low in March, but it is still well below pre-recession levels. More small businesses still, however, plan to cut their workforce rather than to expand it. But the gap between the two has narrowed. So that is a plus.

"However more small businesses say it is harder to get a loan than it was last month, although many of those small firms say that their borrowing needs have been satisfied and they are not really seeking out those loans.

"So I think we could say overall we have seen some modest -- very small, very modest -- improvement in the outlook for small businesses. But in no way shape or form should we say that small businesses are on a big boom."

Posted by deeshore at June 2, 2010 12:44 PM