Businesses Increase Capital Investment Plans

As the economy continues to improve, an American Express OPEN survey shows nearly half of all business owners are planning to make capital investments in their companies. According to respondents, the focus of their capital spending will be on technology, including updated computer systems and software. Additionally, 28% of those surveyed reported that they expect to hire new employees this year, up from 23% last fall. However, most business owners are only looking to hire part-time employees or freelance help.

While business owners appear willing to invest in upgrades, they remain pessimistic about a rapid economic recovery. Roughly 30% of respondents feel the economy is negatively affecting their business, while only 18% believe the economy is actually improving.

Two out of three business owners surveyed say the economy has forced them to cut costs, while 70% of respondents acknowledged plans to exact cost-cutting measures in the next six months. About 40% of those surveyed say the economy is keeping them from spending money on advertising and sales. Finally, the youngest entrepreneurs are the most hopeful right now, with 72% of business owners aged 19 to 29 saying they feel optimistic about their business prospects and the economy.

Reprinted from ASIpromogram 04/22/2010