Optimism declined among small-business leaders.

Small-business leaders feel the least optimistic in five years, and their support for President Reagan is declining because many believe that he has failed to lessen government bureaucracy, an industry survey said. The report by Dun & Bradstreet said the business people ranked their biggest problems as a cash-flow squeeze--caused by low inflation holding prices down while borrowing costs are high--and a lack of qualified, motivated workers. Sixty-two percent of the respondents felt positive about the economy, which was the lowest level since the survey was begun in 1981, Dun & Bradstreet said.