Sixty-Nine Percent of Business Owners Do Not Plan on Hiring Within the Next Year

Press release from the issuing company

Thursday, September 1st, 2011

Newtek Business Services,The Small Business Authoritywith a portfolio of over 100,000 business accounts, announced today the findings of its SB Authority Market Sentiment Survey, a monthly window into the concerns of independent business owners. Based on a poll of approximately 1,100 respondents, one of the key findings from the August survey was that 69 percent of small business owners do not plan on hiring. Two other questions in our survey support the findings of business pessimism. Most business owners, looking out on the horizon, are either pessimistic or neutral at best, regarding the overall business environment. Several business owners during the last 12 months have raised their prices or maintained them to fight off the effects of inflationary pressures eroding their margins. Business owners in an economy described as stagnant, need to improve their cash flows and bottom lines while continuing to look towards the only segment of their business where the market enables them to improve their cash flows.

Barry Sloane, President and CEO ofThe Small Business Authoritycommented, "Technology utilization needs to be embraced by small to medium sized business owners over the next several years. It is the only area where internal costs to run one's business can be reduced as well as produce efficiencies in performance and production of one's labor pool. There is no denying the trend of utilizing the cloud environment for computing and operating one's business is far superior in costs, security and efficiency than what business owners are typically using today. The recent effects of Hurricane Irene would have had a diminished affect on business owners up and down the east coast if all of their business operations were administered and functioned in the cloud in a geography that was unaffected due to the coastal storm. The data would be secure, the businesses would be up and running, and commerce could continue. Businesses that had their server on premise with a local IT provider (not in a data center) have suffered the consequences of neglecting the positive gifts that the market offers it today."