Almost a fifth of small businesses at risk: Amex



NEW YORK (Reuters) - Nearly one in five small U.S. businesses say they risk going out of business because of the worsening financial crisis, according to a survey from American Express Open.

The credit card issuer's small business branch conducted the poll in October, reflecting the latest downturn in financial markets.

It found that 63 percent of businesses were having more trouble accessing credit, up from 50 percent in an already turbulent August survey. Eight in ten businesses said they experienced a decline in sales.

The poll was based on a nationally representative sample of 602 small business owners/managers of companies with fewer than 100 employees, Amex said.

Still, many were hopeful the government's $700 billion rescue package would provide some relief, with 55 percent saying the bailout might help stabilize the economy

(Reporting by Pedro Nicolaci da Costa; Editing by Theodore d'Afflisio)

More (Gloomy) Numbers for Small Business Owners
Posted by: Stacy Perman on October 10





This week American Express Open Small Business Monitor released a survey based on the responses of 602 small business owners across the country. If attitudes and confidence help drive the economy, according to this report, the numbers continue to deliver bad news: one in five businesses report that they risk going out of business as a result of the current economic atmosphere. While 25% of those asked said that the FDIC increase in insured bank deposits (from $100,000 to $250,000) would be helpful to them, at the same time, 45% of small business owners believe that the government’s financial rescue package will not be effective in stabilizing the economy. Concerning the economic climate, 44% of those surveyed said that they expect their businesses to be negatively impacted over the next six months while just 23% said that they expected business to grow in the same time period. Ominously, 79% reported that their sales have been on the decline.While surveys often deliver a spectrum of views, the results of this most recent OPEN data skew rather definitively — to the south.