Jun. 25, 2008 at 1:36pm

Economy taking its toll on businesses

With rising oil prices and constant talk of a recession, it's no surprise small business optimism is waning.  That's the conclusion of a recent Wells Fargo/Gallup Small Business Index survey, where more than one-third of small business owners surveyed said their personal financial situation is getting worse.

Half of the business owners surveyed said they've postponed a major purchase in the past three months, and 44 percent said they've reduced the amount of money they've deposited into savings or checking. A third said they have reduced the amount they have contributed to a retirement account.
 
"It has been a challenging year for small businesses, requiring business owners to rethink their expense and cash flow priorities," said Rebecca Macieira-Kaufmann, head of Wells Fargo's small business segment. "Times of economic downturn often showcase the resiliency of small business owners. What's critical now, as in any economic environment, is that business owners maintain strong financial management practices and plan for the future."

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