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Firms optimistic on outlook
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July 28, 1998: 4:37 p.m. ET
Most small biz leaders believe country is 'headed in the right direction'
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NEW YORK (CNNfn) - Nearly two-thirds of small business executives believe the U.S. economy is "headed in the right direction," expressing the highest level of optimism among small business leaders in four years, according to a new study.
The study, conducted by the financial services company KeyCorp, found only 42 percent of respondents expressed such optimism in 1997.
Of the 401 small business leaders surveyed, 72 percent reported total revenue increases, by an average of 32 percent. Another 21 percent said revenues had stayed the same and only 6 percent said revenue had decreased, by an average of 20 percent in the past three years.
"These are good times for small business," said Sandy Malby, vice chairman and head of KeyBank's small business division. "The opportunities are in all parts of the economy and country, and the potential awards are great."
Female small business executives and small business leaders in the South were particularly optimistic about the prospects for further growth, according to the study.
The survey also found an increasing presence of Generation Xers -- employees under 35 -- in the work force of small businesses.
Small business leaders generally believe these workers are better educated and more technically skilled than those of previous generations, though 69 percent said Gen X workers have a poorer work ethic than older workers. In fact, 47 percent said such workers produce poorer-quality work than other employees, though under-35 workers appear to have an easier time adjusting to and using technology.
The survey also found that female small business owners are more critical of Gen X workers than their male counterparts.
Small business owners said marketing performance and keeping pace with technology were areas where their firms needed the greatest improvement. Of those surveyed, 29 percent said cost was the biggest barrier to becoming technologically advanced.
Other technology-related findings:
- Almost nine out of 10 of small business executives reported using PCs for business, compared to 69 percent just a year ago.
- More than one-third said their company had a World Wide Web site. Nonetheless, only 10 percent said the Internet has had a major impact on their business.
The study also found small business leaders see civic responsibility and community involvement as an integral part of their companies' objective. More than 85 percent said small businesses need to be active in their communities and contribute to local charities.
On average, small business owners said they donate 3.8 percent of their sales revenues to community activities and charities. 
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KeyCorp
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