Arizonan small businesses 'feeling impact of economic decline'

A significant drop in confidence among small businesses in Arizona has been noted.

Research carried out by O'Neil Associates for the Arizona Small Business Association has revealed that 45 percent of firms in the state believe their profits are currently below those made last year.

Meanwhile, 29 percent think takings have stayed about the same, with 26 percent stating they have seen an increase.

Director of O'Neil Associates Michael O'Neil said, "Just about every single hard economic indicator is negative."

O'Neil added that small business often feel the impact of changes in economic conditions "more quickly."

He also reported that small businesses are looking to maintain profits by cutting their expenses. However, as the financial decline continues it was claimed that there will be a limit as to how much spending can be scaled back.

In addition, the study indicated that a quarter of small businesses in Arizona believe the overall economy to be poor, with the majority (56 percent) believing it is currently in fair shape.

Around a fifth think it is in a good state, while none of the 200 respondents think it is excellent condition.

Earlier this week, research from the National Federation of Independent Business revealed that small businesses' optimism dropped to 87.5 in October, the third-lowest figure that has ever been recorded by the organization.

Small businesses with concerns about how they will manage over the coming weeks might wish to seek out lines of credit to help sustain a healthy bottom line.