Small businesses show 'resilience' in face of economic storm

In spite of the financial downturn, a new study reveals a significant number of small and medium-sized businesses believe they have favorable commercial prospects.

Research released by Administaff in its Business Confidence Survey shows 38 percent of managers and owners at such firms are looking towards their organization growing at the same rate in 2009 as it has this year.

Some 37 percent, meanwhile, believe next year's growth will be even higher.

The study also showed that 61 percent of small businesses are looking to either increase or maintain their current capital spending.

Paul J Sarvadi, chairman and chief executive officer at Administaff, said, "Faced with significant business challenges, small and medium-sized businesses continue to exhibit remarkable resilience and determination in serving clients across many industries and locations."

However, small business owners hold some concerns in the current financial climate with 81.5 percent claiming that the economy was their biggest source of anxiety, with 43.1 percent worried about increases in the cost of healthcare.

Small businesses may find that getting a loan from a nontraditional lender could help with their various financial tasks such as making payroll and keeping staff turnover low.

Meanwhile, Dan Steppe, director of the entrepreneur program at University of Houston's C. T. Bauer College of Business, recently claimed businesses should attempt to use the downturn to help expand their organization by taking over failed competitors.