America's Small Businesses See the Bright Side of the Economic Downturn

HERNDON, Va., Aug 05, 2009 (BUSINESS WIRE) --
SBCOE | Quote | Chart | News | PowerRating -- There is a silver lining to the continuing recession for the majority of
small businesses, with two-thirds of owners reporting they are finding
new ways to operate more efficiently. This finding is revealed in the
latest Small Business Success Index(TM), an ongoing measurement of
the overall health of U.S. small businesses sponsored by Network
Solutions(R) (www.networksolutions.com)
and the Center for Excellence in Service at the University of Maryland's
Robert H. Smith School of Business (www.rhsmith.umd.edu).
The index, based on a June 2009 telephone survey of 500 small business
owners, also found that small businesses' mood has brightened compared
to six months ago, with 38% of small business owners expecting the
economy to improve in the next 12 months, compared to the 23% who felt
this way in January. In June, only 28% of small business owners expected
the economy to decline in the next 12 months, compared to nearly half
(48%) just six months ago.

In addition to the 66% of small business owners saying they are now more
efficient, the Small Business Success Index reported that 42% of owners
say the recession has caused them to strengthen internal teams and the
same percentage are more innovative and say they are providing new
products and services to benefit customers.

"Small business owners can use the current economic downturn to make
their companies more successful," said P.K. Kannan, director of the
Center for Excellence in Service at the University of Maryland's Robert
H. Smith School of Business. "Those taking actions to become more
efficient in what they do and getting better at working in teams are
also the ones who are externally focused on their customer base to
introduce new products and services that benefit their customers. These
will be the companies that thrive when the economy recovers."

"Like most of us as individuals reacting to the recession, small
businesses have made significant adjustments to their finances," said
Roy Dunbar, Chairman and CEO of Network Solutions, LLC. "In doing so,
they are showing characteristic resilience and creativity. Even though
many owners have suffered a reduction in income from their business,
their passion and optimism remain high."

Small businesses included in the study were privately owned (not
publicly traded), for-profit, had fewer than 100 employees and had a
payroll and/or contributed to at least 50% of the owner's household
income. The resulting Small Business Success Index identifies and
measures the factors that lead to success. A small business can compare
its company to its peers by taking the survey and receiving a
quantitative analysis in return at www.growsmartbusiness.com.

Key Findings from the June 2009 Small Business Success Index:

--
Small businesses have become more optimistic about their future:


--
In June, more small businesses expect the economy to improve than
decline in the next 12 months, with 38% expecting improvement
compared to 28% who expect decline


--
When asked the same question six months ago, only 23% expected
improvement and 48% expected decline

--
Small businesses have experienced positive effects from the
economic downturn:


--
66% say the economy has led them to find new ways to operate more
efficiently

--
42% believe the economy has caused their company to become a
better team

--
42% have found new products and services to benefit customers

--
26% have reduced inefficient or unnecessary staff

--
Small businesses have also been hit with some negative effects of
the recession:


--
30% of small business owners believe their access to capital is
not sufficient

--
41% of small business owners have had to accept a lower standard
of living

--
30% of small business owners report the recession has hurt
employee morale

--
19% of small business owners say they have had to reduce valuable
staff

--
Some small businesses have cut employee benefits, with 15%
reducing their retirement savings plans and 3% eliminating this
benefit in the past 12 months

--
Small business have also reported changes to health insurance
benefits, with 19% increasing the benefit and 22% decreasing the
benefit level in the past 12 months


--
Rising healthcare costs are a "major problem" for 48% of small
businesses with employees

For more information about the Small Business Success Index and to
download a summary report, please visit www.growsmartbusiness.com.

The index findings will be discussed at the GrowSmartBiz conference to
be held at Washington, D.C. on September 29, 2009 (http://growsmartbusiness.com/small-business-conference).

About Network Solutions, LLC

As the leading provider of Web solutions for small business, Network
Solutions offers a full range of services that include easy to build
websites, hosting, web design, e-commerce software, search engine
marketing, SSL certificates, e-mail services, and domain name
registration. Network Solutions draws on 30 years of experience to make
it simple and affordable for customers to build and manage an online
presence through a one-stop Web solutions provider. www.about.networksolutions.com

About the Robert H. Smith School of Business

The Robert H. Smith School of Business is an internationally recognized
leader in management education and research. One of 13 colleges and
schools at the University of Maryland at College Park, the Smith School
offers undergraduate, full-time and part-time MBA, executive MBA, MS in
business, Ph.D. and executive education programs, as well as outreach
services to the corporate community. The school offers its degree,
custom and certification programs at locations in North America and
Asia. www.rhsmith.umd.edu

About Rockbridge Associates Inc

Rockbridge Associates Inc. is a leading market research firm based in
Great Falls, VA. Its clients include Fortune 500 companies, government
agencies and associations. Rockbridge conducts primary research and
consulting to help with product design, positioning, pricing, and
customer satisfaction. www.rockresearch.com

SOURCE: Network Solutions

Network Solutions 
Susan Wade, 703-668-5057 
swade@networksolutions.com

For full details on (SBCOE) SBCOE. (SBCOE) has Short Term PowerRatings at TradingMarkets. Details on (SBCOE) Short Term PowerRatings is available at This Link.