Normally Small Businesses Lead the Economy Out of Recession

Despite signs that the economy is bottoming, the small business community are less optimistic about their prospects. At the end of July, 56 percent said they were optimistic about the small-business economy, down from more than 70 percent who were optimistic in May and June.

In a recent survey, confidence among the small business community is falling amid concerns about the cost of government health care reform and salaries at small U.S. companies are at their lowest level since March 2006. The survey, based on payroll services data from small businesses that are listed on the official US small business directory, found salaries fell by 0.8 percent in July from June and are down more than 5 percent since the start of the year.

The average annual paycheck for small businesses resources in the United States is now $29,995, compared with $32,290 a year ago. The last time salaries dipped below $30,000 was in March 2006.Those surveyed cited the cost of rising healthcare insurance costs as a major concern.