SmallBizResource Blog -- Research

The Summer That Wasn't? Economy Puts A Damper On Small-Business Owners' Vacation Plans

Posted by Gayle Kesten Monday, Jun 1, 2009, 11:01 AM ET

Three's a charm, but four was not meant to be. Economic confidence among the smallest of businesses slipped in May following three straight months of steady gains, and now the majority of people who run those companies say they're either postponing or canceling their vacation plans.

Nearly half (48%) of the 750 small business owners (five or fewer employees) say their own economic conditions are worsening, up from 40% in April, according to the May Discover Small Business Watch. On the flip side, 24% forecast improvements, but that's less than the 32% who thought so one month ago.

A few other stats that demonstrate the southerly dip:

• 60% rated the overall economy as poor (April: 54%)

• 57% think the economy is worsening, while 23% think it's getting better (April: 51% and 31%, respectively)

• 49% have experienced temporary cash flow issues in the past 90 days that caused them to hold off paying some bills (April: 42%, and the highest percentage since August 2006)

• 53% plan to decrease their biz-dev spending during the next six months (April: 46%)

With those numbers as a backdrop, it comes as no surprise that when budget-conscious small-business owners have to tighten their belts, doing so cuts into taking time off from the grind to recharge. The Discover survey reveals a full 56% of small-business owners are postponing or canceling summer vacation plans due to the economy (compared to 45% of the general population who say they're doing the same). "The economy has obviously been a factor for small business owners caught in the slowdown; they're grinding out more hours serving existing customers and likely putting in more time looking for new business," said Ryan Scully, director of Discover's business credit card.

Some more about small-business work habits:

• 61% of small-business owners work six or seven days a week; another 22% at least five (general population: 22% work more than five days a week)

• 40% work 7-9 hours a day; 39% work more than 10 hours a day (general population who works more than 10 hours a day: 20%)

• 57% usually or always do some work on official holidays (general population: 31%)

• 27% define a day off from work as truly not working at all, including unavailability for important calls/email (general population: 54%)

Mind you, these are purely numbers, with no grumbling or higher-than-mighty attitudes attached. Many entrepreneurs I've spoken to view their lives holistically, with no separation between personal and professional. If you run the kind of business you can take with you, then working remotely is a decent option; a change of scenery through the window can work wonders.

Has the economy affected your summer vacation plans?

Research

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