Small Businesses Expect 2010 Growth

The majority of small business owners anticipate their 2010 revenues will exceed their 2009 sales, according to a new survey. The data, released by the Guardian Life Small Business Research Institute, shows 51% of small business owners believe their year-over-year sales will increase in 2010. A year ago, only 32% expected better sales in 2009 compared to 2008. "Many government officials and economists believe the nation's recovery from the recession depends on small businesses; thus it's heartening to see that small business owners have a positive outlook for [the rest of] 2010," said Mark Wolf, director of Guardian Life.
Within individual markets, data shows environmental companies (65%) and health care companies (60%) have the highest expectation for 2010 revenue increases. Conversely, hotels and restaurants (58%), retail companies (57%) and financial firms (57%) have the highest percentage of small business owners who expect 2010 sales to be the same or lower than 2009.Consistent with their optimism for sales growth, the survey also shows 45% of small business owners plan to expand their companies within the next two years. In addition, results show companies with 10 or more employees are most likely to expect growth in 2010. "As companies reach a critical mass of 10 or more employees, they gain a level of stability and resourcefulness that helps them succeed, even in tough times," said John Krubski, research advisor to Guardian Life.
The Institute's findings also show small business owners outperformed their own revenue estimates for 2009. Only 32% of those surveyed last year expected their 2009 revenues to be better than their 2008 sales. Yet, in evaluating their actual performance in 2009, 39% reported a revenue increase over 2008. "Our research indicates that small business owners are typically conservative in estimating the financial prospects for their companies, so this upbeat projection bodes well for the U.S. economy," said Wolf.