Forty-Three Percent of Small Business Owners Don't Plan on Retiring
MINNEAPOLIS, MN, August 7, 2012 -- Change is really the theme of this quarter's Economic Pulse study as the small business market continues to ride the post-recession roller coaster of confidence, but there is one area where little change is expected: who the person is making the financial decisions for small businesses.
"We will continue to see the same people as small business owners in the foreseeable future," says Bernie Kuechler, Project Director, Barlow Research.
As reported in Barlow Research's Economic Pulse Survey for the 3rd quarter of 2012, 43% of owners of small businesses with sales $100,000 to $10 million do not intend to retire and of those who do intend to retire, the average age is now approximately 67 years old.
"Small business confidence has once again declined, but the negative effects have yet to reach the banking industry. If confidence remains negative, we need to be prepared for a further decline in loan demand. Business owners may not retire, but they will continue to retreat from risk," says Mr. Kuechler.
Other important results from the third quarter Economic Pulse report:
- Small business and middle market confidence in the U.S. economy fell in the third quarter of 2012.
- Small business expectations for the financial condition of their company fell 14 points.
- Small business expectations for employment and capital expenditures returned to negative territory.
- Small businesses expect a lower need for additional credit going forward and fewer are planning to apply for additional credit than in the previous quarter.
- Approximately one in ten small businesses have switched primary financial institutions.
- Of small business owners who intend to retire, 72% plan to still work part-time after they retire.
About Barlow Research Associates
Barlow Research Associates, Inc., founded in 1980, provides research and consulting services to the banking industry in the U.S. and overseas with specialties in custom research, strategic consulting and syndicated research programs for small business, middle market and business Internet banking.
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