Small business owners say they are more optimistic about the economy, although their enterprises remain challenged with cash flow problems and according to new research from Discover’s Small Business Watch.

The second consecutive month for a rise in optimism among the nation’s small business owners doesn’t connect with some of the discouraging indicators the report reveals:

ü     More than half say they’ve held off on bill payment because of cash flow issues in the past 3 months.

ü     Nearly 70 percent of small biz owners say their take-home pay has taken a hit in recent months.

ü     Almost 60 percent rate the economy as “poor”, and half of them said it was getting worse.

 

The Discover Small Business Watch is compiled each month by Rasmussen Reports, an independent research firm, based on interviews and survey responses from approximately 750 small business owners.   The July 2009 report finds entrepreneurs are increasingly borrowing to keep their businesses operating; but more are being forced to seek alternative methods outside of applying for a loan or line of credit:

ü      65 percent of small business owners still have not borrowed money to pay their business expenses; but the number of those who have borrowed was 33 percent in July, up from 19 percent in October 2008.

ü      Those who are borrowing aren't using traditional sources. When asked if they have applied for new credit cards, lines of credit or loans, 82 percent said they had not, while 17 percent said they had and 2 percent weren’t sure. Of those who did apply for loans or credit, 44 percent said their applications were approved, 31 percent were rejected, 7 percent were pending and 18 percent weren't sure.

ü      Current economic conditions have forced 69 percent of owners to reduce the amount of money they take home from their small businesses, up from 55 percent in October 2008.

The recession and slower sales may prompt many small business owners and self-employed professionals to go to work if they have flu symptoms. In a downturn, going to the office and ‘working through the pain’ may not be the smart business move according to one health expert.  Dr. Mary Capelli-Schellpfeffer, medical director of Loyola University Health System Occupational Health Services, advises people who come to work sick are more likely to hinder than help their company.

“An organization can be severely impacted by people coming to work when they’re sick. We know illness can spread from person to person causing entire work groups to be impacted. But less obvious is how job performance, organization, productivity, creativity and financial stability can all be affected,” said Capelli-Schellpfeffer.

People often think because they wash their hands or take over-the-counter medications, they aren’t spreading the illness. Not so.

“Just being in a room and breathing when a person is sick can spread the illness not to mention coughing and sneezing. If you’re sick you shouldn't’t be in the workplace. It interrupts business and puts others at risk of infection,” said Capelli-Schellpfeffer.

Sickness can interrupt productivity by creating a distraction and causing both the infected person and coworkers to focus on the illness instead of their jobs. It also blurs the lines between personal and professional lives and relationships.

“It’s good for people to feel like a team and care about each other, but it’s not healthy for people to be invasive of each other’s privacy, including their medical privacy,” said Capelli-Schellpfeffer. “It disrupts the interactions of the team and can be corrosive, even setting the stage for future judgments, misunderstandings and biases.”

To ensure an environment of wellness and productivity, managers need to keep an open dialogue with employees about attendance policies and sick days according to Capelli- Schellpfeffer.

“Encourage employees who are sick to use their sick time. Many don’t know they have it because they’ve never had to use it,” said Capelli-Schellpfeffer. “Make sure to plan ahead so if you have a deadline there are procedures in place - like how to work from home. By making small changes and preparing for illness we can protect each other and our businesses.”

If someone in the workplace has been sick Capelli-Schellpfeffer offers these common sense, but often forgotten, tips to limit the spread of illness:

1. Wipe down all surfaces, especially shared surfaces such as copy machines.
2. Let space be your friend: Having 6-8 feet between you and a sick person can reduce the chance you too will become sick.
3. Keep food and beverages away from work areas of sick employees, including offices and cubicles.
4. Implement a wellness agenda that includes an annual flu shot.

“While news cycles and the public’s attention span about the flu rises and wanes, the flu is not going away and most likely will only get worse this fall,” said Capelli-Schellpfeffer. “Though there is a cost involved in promoting wellness, it is small in comparison to the pricey hit companies take when their workforce is impaired by illness. A flu shot program is an investment that yields big returns for businesses.”

You will find a number of wellness videos and podcasts on SBTV.com created especially for small business.