Headlines in the The Wall Street Journal  describe the shriveling of US and global economies almost every day. Heralding persistent economic decline could discourage small business owners.               

The November 2007 survey of Discovery Small Business Watch  concluded that  “Economic confidence among small business owners declined for the fourth straight month in November, as increased pessimism over the U.S. economy dragged down indicators of relative stability.”   

However, the Discovery survey also said that small business owners were experiencing less cash flow issues over the last three months. When I remember that Peter Drucker considered cash flow more important than profit, better small business cash flow is a huge encouragement.   

So why does the Discovery Small Business Watch survey show a decline in entrepreneurial confidence when small business owners are improving their cash flow situation?

Small business owner Tim Wilburne, of Virginia-based TW Controls debunks Discovery’s survey, saying: “So they found 1000 small businesses with 5 or fewer employees that had time to take a survey? Some weeks I can hardly find the time to even talk to people I know, much less take a survey. It sounds to me like these businesses aren’t putting forth the effort to be successful.” Tim noticed no data about small business owners who refused to spend their time taking the survey.

I like Tim’s attitude. I bet Peter Drucker would too. Professor Drucker explained that “the entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”     

Even in the face of the “doom and gloom” reports and surveys, small business owners show themselves to be entrepreneurs when they respond to change and exploit it as an opportunity. 

What opportunities can you exploit from the economic changes that are happening in your markets?