Small businesses expect to remain stable, survey finds

9/7/2011

Despite stagnant unemployment numbers and the stock market turmoil of August, U.S. small business owners are confident of their ability to stay stable and grow, according to a recent sector survey.

A multinational financial institution survey of small business owners showed confidence in their company's strength. Nearly 79 percent of those polled expected to be able to handle another economic downturn, which would be integral to keeping unemployment from rising should stocks take another major fall or the real estate and commercial funding markets to weaken.

"Small businesses are the backbone of our economy and the cornerstones of our communities. They create two of every three new jobs in America, spur economic growth, and spark new industries across the country," said President Barack Obama in a National Economic Council release.

Factors leading to the strength of small businesses and owners' perceived stability may include good news from several fronts. While Wall Street saw large fluctuations earlier in the summer, many sectors remained stable. The Federal Reserve announced a holding of low interest rates, which combined with the Mortgage Brokers Association findings of a rise in loan originations may point to gains in the lending sector.