Small business website MerchantCircle is out with a new survey of its members, and we found this chart to be particularly interesting.
As you can see, nearly 50% of the more-than 12,000 respondents disagree or strongly disagree with the idea that the worst effects of the recession are behind us.
So what gives? How can so many respondents honestly not think the worst is over?
The answer: credit!
Everyone knows that bank lending is constrained, but it’s at the small-business level where lending has really been torn to shreds. We’ve seen this in other data. When it comes to jobs, it’s the household-survey, which captures small businesses, where the numbers look the ugliest. Large corporations aren’t complaining nearly as much, and most (at least when their CEOs talk to Maria Baritoromo), generally sound positive.