Small-business owners nationwide cautious about the economy

Small-business owners nationwide cautious about the economy

Only one-third of small-business owners think the national economy will improve this year, just more than half of the 61 percent who said so in The Hartfords spring survey. But their own businesses are doing well, with 68 percent of owners saying they are moderately to extremely successful.

The second annual study found that small-business owners see slow economic growth (67 percent), taxes (59 percent) and uncertainty about federal regulations (56 percent) as major risks. They have dealt with the slow economy by cutting costs, strengthening existing client relationships, prospecting for new clients and refining their business strategy. Cost-cutting measures include taking less money out of the business, investing less in expansion, reducing owner/partner compensation and hiring fewer employees.

Three in four small-business owners expect their taxes to go up, and two-thirds dont intend to hire next year. The deterioration in the percentage of small business owners who are optimistic as compared to six months ago is remarkable, The Hartfords CEO, Liam Hartford, told USA Today.