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Survey Shows Optimism Among Small Businesses Despite Economic Concerns
QuickBooks Small Business Survey Also Reveals that Managing Finances Remains Top Business Challenge
MOUNTAIN VIEW, Calif. - December 20, 2002 - Thirty-six percent of businesses surveyed with fewer than 250 employees cited "the economy" as their top concern in the first "QuickBooks® Small Business" survey commissioned by Intuit Inc. (NASDAQ: INTU). Despite the concern, 87 percent believe that they will weather the sluggish economy and be doing business in five years. More than half believe that they will be in business in ten years. Concerns about managing business growth (21 percent) and competition from larger businesses (18 percent) ranked second and third in the survey.

"While the sluggish economy is a concern for some, the overwhelming optimism shows small businesses' confidence in their long-term outlook," said Allison Mnookin, a small business expert at Intuit.

The QuickBooks survey also revealed that small businesses continue to be challenged by many of the day-to-day activities associated with running a business. A third of those polled felt that accounting was the most intimidating part of running their businesses, beating out managing employees, customer relationships, or inventory and sales. Only six percent identified themselves as having "a lot" of formal financial training, and more than half said they had none.

"Good and bad economies come and go, but solid business principles remain constant," added Mnookin. "Successful businesses focus on improving the things that they can control, like better managing their finances or other internal processes, and better serving their customers."

Mnookin suggests working with a financial advisor or accountant to identify new opportunities to improve business processes or identify new revenue streams. She also suggests that business owners take stock of their daily work routine and look for ways to free up more of their time, noting that "the owner's time is often one of the most valuable commodities that a business has." With more time, business owners or managers can focus on finding new customers or better serving existing ones - both of which can help improve the businesses' bottom line.
 
Additional Survey Findings
  • Ninety percent of business owners trust their company financials to only themselves and/or their accountant; Eight percent give employees access to the accounting;
  • Approximately 24% of the respondents claimed that they had either caught their employees stealing or have suspected it;
  • More than half of small business owners and managers feel very secure that their small business is abiding by accounting laws;
  • More than 90 percent of the respondents claimed that they would start their business again if given a second chance.
 
Background and Methodology
The nationwide survey of 500 small business owners and managers was conducted by Greenfield Online, an independent data collection firm, on behalf of Intuit Inc. Respondents to the survey included 390 business owners and 110 managers whose companies' employed less than 250 people. The survey was conducted by Greenfield Online. Quotas were set regionally, to ensure nationally representative results. The margin of error is +/- 4.38 percent.
 
About Intuit Inc.
Intuit Inc. (NASDAQ: INTU) is a leading provider of business and financial management solutions for small businesses, consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing.

Founded in 1983, Intuit has annual revenue of more than $1 billion. The company has nearly 7,000 employees with major offices in 13 states across the U.S. and offices in Canada, Japan and the United Kingdom. More information can be found at www.intuit.com.
 
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