*Recession's Impact on Small Businesses: Economic downturns have had inconsistent impacts on entrepreneurs and small business owners in the past; sometimes, they create a
context in which behemoth businesses become crippled, thus allowing small potatoes to flourish. But is that the case in the current environment? Surveys reveal mixed results.
For instance, Intuit's "Get Back to Business" survey, which polled more than 750 small business owners (fewer than 100 employees) implied almost zealous optimism:
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91% of small business owners see opportunities for their businesses in the current recession; and,
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77% expect to grow as the economy falters.
However, PNC's "Economic Outlook" survey results paint a very different picture. According to responses from a pool of 500 U.S. business owners and senior executives of
businesses with annual revenues ranging from $100,000 to $250 million:
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Only 6% are optimistic about the U.S. economy over the next six months;
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19% expect their profits to decrease in the near term;
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Top concerns were the possibility of a recession (36%) and higher energy prices (30%);
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63% doubted that the federal fiscal stimulus plan will boost their businesses.
In a similar vein, a survey commissioned by the Discover Business Card, which yields a monthly index that measures the relative economic confidence of U.S. small business
owners and randomly samples 1,000 owners of businesses with fewer than five employees, hit an all-time low point and showed that:
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77% of small business owners feel economic conditions in the U.S. are getting worse;
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53% rate the U.S. economy "poor," compared to 36% who said the same in February;
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Only 16% rate the U.S. economy "excellent" or "good;" and,
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47% had experienced cash-flow issues during the previous 90 days.
These findings are extremely relevant to PR execs, most of whom either work for a small firm, or have clients that are small businesses.
Source: BusinessWeek.com
*Vendor Deficiencies: The CMO Council's Channel Performance Outlook Study revealed a "failing grade" for how vendors drive business performance through critical avenues of
customer engagement, purchasing and service. Among the key findings:
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Less than 7% of resellers said vendors are their most valuable source of leads;
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Only 19% said vendor leads were highly actionable;
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70% of resellers said vendor marketing campaigns were ineffective or only somewhat effective in driving their business; and,
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When it comes to partnering, 46% say vendor field marketing reps never or infrequently team with them in cooperative selling.
Source: CMO Council
*Shareholders Up the Ante: According to two surveys released by RiskMetrics Group, shareholders are taking more active interest in management practices due to the credit
crisis. Among the findings:
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Ineffective risk management by corporations with subprime exposure and the absence of mortgage industry regulation were considered to be the key causes of the mortgage
meltdown by investor respondents, at 38% and 24%, respectively; and,
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Lack of board oversight was only the third most concerning governance factor for all the respondents (22%), after lack of transparency (38%) and poor pay practices that
encourage short-term performance (29%).
Source: RiskMetrics Group
*Judgment Trumps Trustworthiness When It Comes to Leaderhip: NextNationalCEO.com conducted a survey to find out what the public believes are the most important leadership
characteristics for the upcoming election's presidential candidates--traits that can be directly applied to corporate leadership and management as well. The top 10 most important
characteristics are:
1. Insightful Judgment
2. Visionary
3. Trustworthy
4. Gets Things Done
5. Ability to Inspire Others
6. Good Judge of People
7. Influences Others
8. Courageous
9. Confident
10. Energetic
Source: NextNationalCEO.com