New Wells Fargo/Gallup Survey: Small Business Owners Optimistic About Their Personal Finances
August 30 2004 - 9:00AM
PR Newswire (US)
New Wells Fargo/Gallup Survey: Small Business Owners Optimistic
About Their Personal Finances Latest Index Results Hold Steady
Overall Despite Significant Variations in Regional Index Scores SAN
FRANCISCO, Aug. 30 /PRNewswire-FirstCall/ -- The nation's small
business owners apparently aren't letting any broader fears about
higher oil prices, terrorism, rising interest rates, or slowing
economic growth affect their optimism. A new Wells Fargo/Gallup
survey reveals that a majority of small business owners indicate a
growing level of confidence in their personal financial situations.
While the overall Wells Fargo/Gallup Small Business Index rose
slightly over the last quarter from 100 to 103, 68 % of small
business owners surveyed say their personal financial situations
are either "excellent" or "good." The modest increase in the Index,
which measures business confidence and overall market conditions,
points to the continued strengthening of small business owner
confidence. "The continued optimism we are seeing from small
business owners is also very clearly translating into greater
optimism with regards to how they view their personal financial
situations," said Rebecca Macieira-Kaufmann, small business segment
manager for Wells Fargo. "The steady rise of small business owner
optimism and confidence in their business and personal financial
situations is another positive sign for the economy." Small
business owners surveyed were asked to cite their company's most
important problem. Lack of business/poor economy was cited by 23%
of all respondents, followed by financial/cash flow issues (18%),
lack of qualified employees (13%), and health insurance (10%).
Additional survey results indicate that 70% of small business
owners surveyed say their personal financial situations are getting
better, while 77% expect to be better off financially a year from
now. 67% of small business owners say they are in a good position
to maintain their current standards of living when they retire.
Additionally, 54% of small business owners say their business will
be a major source of their retirement income -- either from
continued ownership or from its eventual sale. "The last few years
have forced many small business owners to re-examine our retirement
plans to ensure we were planning realistically for the future,"
said Ann Padilla, Owner of SunnySide Inc. / Temp Side, a
Denver-based staffing company. "Business has been picking up over
the last 12 months, but the recent economic downturn was a wake-up
call that reinforced the need for strong business and personal
financial planning." While the overall Index score remained
relatively flat, there were significant variations from region to
region. The Index score for the East Region had the largest
increase, rising 20 points from 84 to 104, while the Index score
for the South remains the overall highest scoring region at 128 (up
from 119). The Index score for the Midwest region was the only
region with a major decline in scoring, dropping 21 points to 78.
The Index score for the West region again remained virtually the
same, dropping one point to 92. The Index tracks six key measures
for both current conditions and future expectations as reported by
small business owners: current financial situation, revenues, cash
flow, capital spending, number of jobs, and credit availability.
About Wells Fargo Wells Fargo & Company is a diversified
financial services company with $420 billion in assets, providing
banking, insurance, investments, mortgage and consumer finance to
more than 23 million customers from more than 6,000 stores and the
internet (wellsfargo.com) across North America and elsewhere
internationally. Wells Fargo Bank, N.A. is the only "Aaa"- rated
bank in the United States. Providing financial products and
services to more than one million businesses with annual sales up
to $20 million in all 50 states, Puerto Rico and Canada, Wells
Fargo is the #1 lender to small businesses in the United States in
total dollar volume according to 2002 CRA data. The second largest
SBA lender in dollars, and third largest in loans, Wells Fargo is
an SBA Preferred Lender in 28 states, and originated 3,181 loans
for $473 million in 2003. Wells Fargo has also been ranked the
number one SBA 504 lender nationally for the last two years. Speer
& Associates rated Wells Fargo's online services #1 for small
business and for consumers (2003). Its targeted business services
programs provide outreach and education to women, African American,
Latino, and Asian business owners about financial services. Since
1995, Wells Fargo has loaned more than $20 billion to women and
minority business owners. About the Gallup Organization For more
than 60 years, the Gallup Organization has been a recognized leader
in the measurement and analysis of people's attitudes, opinions and
behavior. While best known for the Gallup Poll, founded in 1935,
Gallup's current activities consist largely of providing marketing
and management research, advisory services and education to the
world's largest corporations and institutions. DATASOURCE: Wells
Fargo & Company CONTACT: Matt Hurwitz of Wells Fargo &
Company, +1-415-222-1679, or Web site: http://www.wellsfargo.com/
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