Small businesses report experiencing modest yet stable improvement financially, according to the 2012 Small Business Barometer conducted by Capital One.
In fact, 44 percent of respondents say they are in better financial positions than just one year ago, and 37 percent of respondents plan to hire in the next six months, marking a two-year high. Of the respondents, 16 percent say they have positions they are unable to fill, which is one point higher from the previous quarter.
"This quarter's survey results suggest that business is generally holding steady for small businesses. The current economic environment and overall business performance continue to hold their own or improve, and while hiring is far short of pre-recession levels, we're seeing small businesses making plans to hire new employees in numbers that are among the highest we've seen in the past two years," says Jon Witter, president of retail and direct banking at Capital One.
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"Though these are promising signs, as we look forward, we're also seeing some hesitancy and concern about prospects for the remainder of the year as well as a limited line of sight to growth – demonstrating small-business owners are moving forward with continued caution and pragmatism as they consider their plans and projections for the coming months," he says.
Another 45 percent of respondents say their businesses' economic conditions are approximately the same while 38 percent of respondents say they are experiencing improving economic conditions. Only 17 percent of respondents say economic conditions are worsening.
While seven out of 10 respondents say they intend to spend, only 15 percent of respondents expect to increase business development and investment spending. This is 10 points lower than the previous quarter and 12 points lower than the two-year record of 27 percent last year.
Twenty-five percent of respondents say they have tried to obtain financing over the past year, which is the survey's highest figure in the last nine quarters. Of those respondents trying to obtain financing over the last 12 months, the manufacturing and construction sectors mark the highest percentage of those seeking the extra support.
Another 42 percent of respondents say landing financing is more difficult than it was six months ago and 9 percent of respondents say gaining financing is easier than it was six months ago.
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