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Small Businesses are not affected by the Stock Market |
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Discover Small Business Watch is a monthly index of the economic confidence of the 22 million businesses in U.S. with 5 employees or less. For more detailed information please go to http://www.discovercard.com/business/templates/bcwatch.shtml.
According to a poll published with the April Watch:
• 68 percent of respondents indicated that changes in the stock market do not have a noticeable impact on their business.
• 88 percent of small business owners said the performance of the stock market "occasionally, rarely or never" influences their business investment decisions.
• 55 percent of small business owners indicated that the stock market does not reflect the economic reality they see around them on a day-to-day basis.
Anita Campbell, in her article in www.smallbiztrends.com, comments that this is hardly surprising given that the stock market does not enter into the day-to-day realities of small businesses such as how many sales can my business close this week and if I hire another employee will I be able to make payroll.
According to the author the economy, as a whole, is however, relevant and small business owners incorporate their perception of overall economic conditions in their decision making process.
We subscribe to the author’s comment adding that the long-term developments of the stock market are one of the best (if not the best) indicator of an economy’s performance.
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