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The majority of small-business owners are not optimistic about the government's stimulus package and are more interested in seeing tax breaks than in government programs to ease credit, according to a monthly survey sponsored by Discover Financial Services. Some 59% of small-business owners surveyed by telephone Feb. 12 and 13 said it is unlikely an economic-stimulus program could help their businesses, while 30% said it was likely they would see benefits and 6% were not sure, according to the Discover Small Business Watch, released today. The Watch is a monthly report measuring relative economic confidence of 1,000 randomly selected small-business owners based on their response to six questions. Its creators established a base index of 100 when the Watch began in August 2006. The Watch's overall index remained nearly flat in February, rising to 71.9 from 71.4 in January. Some 51% of small-business owners said they plan to decrease spending on business development over the next six months, up from 46% in January, and 54% of owners said business conditions are deteriorating, up from 51% last month. But 19% of owners said business conditions are improving, up from 17% who felt the same in January, and 12% said U.S. economic conditions are getting better, up from 8% in January. Given the choice between tax cuts or easing credit to improve small-business economy, 48% of small-business owners said they would opt for tax cuts while 35% wanted to see easing of credit and 17% offered no opinion. Though the Small Business Administration reports it will receive $630 million from the stimulus package for loan programs and loan-fee reductions, 90% of small-business owners surveyed said they have never applied for an administration loan. Asked if they would apply if an administration loan became easier to obtain, 58% said it was unlikely they would apply, 40% said it was likely and 2% were unsure. Sixty percent of owners said it is unlikely they will have to close their businesses because of the economic downturn, while 22% said it was somewhat likely and 14% said it was very likely; 4% were unsure.
