Small-Business Owners: Things Are Worse

Small-business owners are less optimistic today than a year ago, saying their business problems, particularly a shortage of skilled labor, have worsened, according to a survey released Tuesday.

The poll of small-business presidents by D & B Reports showed 67% of the respondents felt positively about their prospects for the next 12 to 18 months, compared to 71% in 1988.

The drop was the first among small-business presidents since 1985, said D & B, Dun & Bradstreet Corp.’s magazine for small-business management.

A shortage of skilled labor topped the respondents’ gripe list, the survey said.

In the survey, 73% said they experienced recruiting difficulties, compared to 64% a year ago.

Other concerns included increased competition, cash-flow difficulties and controlling costs, particularly those of employee health benefits.

Forty-five percent said they were socked with premium increases of 20% or more this year, compared to 39% of those surveyed in 1988.

Almost 50% said they favored national health insurance, compared to 38% a year ago.

Twenty percent said they had reduced health-care benefits to employees, and almost half said they were shopping for a new insurance carrier.

The survey was mailed to presidents and owners of 5,000 randomly selected small businesses with sales less than $12 million. The response rate was 9.4%.