More Companies Worried About their Financial Situation in 2011

The second quarter of 2011 hasn’t inspired hope of financial success in small businesses, according to a recent Wells Fargo Small Business Survey. The second quarter of 2011 finds that more small business owners think their company’s financial situation will be somewhat or very poor 12 months from now, in comparison to their thoughts the during the first quarter of 2011. During the first quarter of 2011, 65% of small businesses thought their companies would be in very good or somewhat good financial situations in a year’s time. By the second quarter, that percentage had dropped to 58%.

The survey also found that the number of small business owners that would rate their company’s financial situation today as very good or somewhat good has also decreased significantly, down to 47% from last quarter’s 53%. However, the majority of small business owners, 40%, thought their revenues would increase a little over the next 12 months.

The Wells Fargo survey also found that, over the last 12 months, 66% of small business owners said that the overall number of jobs at their companies stayed the same. Survey respondents stated that over the next 12 months, 71% expect the overall number of jobs at their companies to remain steady, with 18% predicting a small increase and 6% predicting a small decrease. Only one percent of respondents expect a large increase, and three percent expect a large decrease.