Fuel Oil News

Fuel Oil News June 2014

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Spring LiTErATUrE SHOWCASE 2014 2 Spring LiTErATUrE SHOWCASE 2013 | FUEL OiL nEWS | www.fueloilnews.com S mall businesses are still feeling the effects of a challeng- ing economic landscape, but are increasingly optimistic about the future of their business and the economy, particularly at the local level, according to Capital One's latest Spark Business Barometer. The quarterly nationwide survey measuring the economic perceptions and financial conditions of small business owners, as well as the most common trends and challenges facing small businesses today, found nearly half (49%) of business owners are optimistic about the national economy over the next 12 months, and more than two thirds (67%) feel good about the future of their local economies. Additionally, despite predominantly negative views of current business conditions (with more than half reporting current financial conditions as "fair" or "poor"), 48% believe their financial position will improve over the next six months. The Spark Business Barometer revealed the following key findings: •Economic sentiment is improving, particularly at the local level. More small business owners are optimistic about the eco- nomic outlook over the next 12 months, particularly for their local economies, which 67% said they feel "positive" about. Three out of five (61%) minority small business owners are con- fident about the trajectory of the national economy. • Financial outlook is up, particularly among women, despite continued challenges. Consistent with last quarter, approxi- mately one third (34%) of business owners reported that their businesses' finances are improved, while 20% say their finances are worse. The outlook for the future, however, has improved – with 48% believing their financial situation will improve over the next six months. Women are especially positive, with 57% of female business owners expecting improved financial perfor- mance in six months. • Small businesses are adopting mobile technology at a rapid pace, but security concerns remain. Last quarter's barometer showed 86% of business owners use mobile phones to com- municate with customers and other third parties, and this quarter's survey revealed more than a third (36%) use mobile apps on smart phones or tablets to help manage their busi- ness (with nearly a quarter using mobile apps every day). Concerns related to security remain, however, with 25% of business owners citing security as a primary issue with using mobile business applications. • Few small businesses use Small Business Administration loans, and those who do find them "complex and confusing." Though a majority (79%) of small business owners are aware of SBA loans, only 9% have applied for one. Of those who have applied for an SBA loan, 73% classify the process as either very or somewhat complicated. Results HigHligHts Financial Performance: • According to this quarter's survey results, 38% of small businesses increased sales over the past six months (compared to 40% of small businesses reporting sales increases over the past six months last quarter). At the same time the percent- age of small businesses reporting declining sales has increased from 18% at the end of last year to 26% in the first quarter of 2014. Firms in the financial sector (48%) and those with primarily national and international customer bases (52%) were more likely to report improved sales results. • Capital One asked small business owners nationwide how their current financial situation compares to this time last year. More than one third (34%) reported that their firms' finances are better, while one in five (20%) believe their finances are worse. More than four in 10 (44%) small business owners reported their business finances have held steady over the last year, mirroring results in the previous quarter. • National sentiment about current business conditions remains negative, consistent with results in Q4 2013. The majority (53%) of small business owners describe current business conditions as only fair or poor, compared to 44% who describe conditions as excellent or good. Firms with a primarily local customer base are more likely to view the cur- rent business environment negatively, with 57% describing conditions as fair or poor. economic outlook After a decline in optimism between Q3 and Q4 of 2013, small business sentiment regarding the national economic outlook is improving. Nearly half (49%) of small business owners are optimistic about the national economy over the year, while 44% Small Businesses Continue to Face Challenges, but are Feeling Better about the Future [Editor's Note: The economic numbers might be lacking, and Main Street seems to be disconnected from Wall Street, but the idea that the United States is enjoying a slow but real economic recovery is being pushed in a range of circles. A variety of surveys, mainly from financial institutions, indicate that small businesses are more optimistic of late. Here is one of the more recent and comprehensive examples from Capital One Financial Corporation.]

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