HSBC Finds Small Business Confidence So-So

Another measure of small business owners’ confidence was announced today, and it looks like things are, to be less than scientific for a moment, in "meh" territory.  The HSBC Small Business Confidence Monitor found that confidence (as represented by a number) is still in positive territory, but it’s not terribly high.

"U.S. small business confidence remained positive at 108, a slight increase from 4Q2009 (106) but declined versus 2Q2010 (120)," HSBC reported in an official statement.  "Although the U.S. economy is gradually gaining momentum, the U.S. small business economic outlook has retracted over the past six months amid local economic growth concerns."

Apparently only 14 percent of the survey’s respondents expect the local economy to grow in the next six months.  About 76 percent of the respondents don’t plan to hire new employees, either.

That’s of course less than encouraging.  The good news is that 80 percent of small business owners believe the overall economy will stay the same or grow, so the general outlook is more neutral than gloomy.

Then here’s one other interesting observation HSBC made: Mark Luppi, EVP and Head of Business Banking for North America, said, "We have seen an increase in small businesses expressing interest in expanding their business overseas.  While many businesses postponed their growth plans during the market downturn, they are beginning to demonstrate greater interest in growth opportunities offered in overseas markets."

Let’s hope that turns out to be a profitable decision for those who choose to take the plunge.