Business Owners Confront Higher Energy Costs
One issue that most business owners cannot control is escalating energy costs. In response to higher energy costs, 42% of small business owners reduced their energy use, and 29% passed along the higher costs to customers. In fall 2005, by comparison, 29% of respondents reduced energy use, and 31% raised their prices.

“Rising energy costs are impacting small business owners, many of whom are stuck with a very difficult decision: Absorb the profit-eating costs, or pass the costs to customers who could take their business elsewhere in search of lower prices,” said Sobbott. “As they did when energy costs spiked following Hurricane Katrina, many respondents say they are resisting the temptation to pass along costs to customers for now.”

Business owners in the West are most likely to reduce energy use (48%) in response to higher energy costs, while businesses in the North Central states are most likely to raise prices (35%).

Hiring Plans Are Down, Internet Use Is Up
Overall, 39% of small businesses report plans to hire over the next six months, down from spring 2005 (44%) and spring 2004 (46%). One in five (20%) small business owners cite the challenge of “finding the right staff” as the biggest impediment to growing their business.

While adding staff can boost a business' efficiency, so can the Internet. Small business owners' use of the Internet has increased dramatically since 2003, when the OPEN Small Business Monitor first began tracking Internet usage (88% this year vs. 82% in 2005; 83% in 2004; and 73% in 2003). Overall, women business owners are more likely then their male counterparts to use the Internet for business purposes (90% vs. 82%).

Small businesses are using the Internet for a broad range of business functions. More than half use the Internet to purchase supplies (56%, up from 31% in 2003). In greater numbers, they are using the Internet to market or advertise their business (47%, up from 27% in 2003); service customers (45% vs. 28% in 2003); manage their accounts and pay bills (38% vs. 17% in 2003); network with other small business owners or sell products or services (both 37% vs. 21% in 2003); and access capital by applying for loans or credit cards online (13% vs. 8%).

Frustrations Aside, Business Owners Encourage Others to Live the Entrepreneurial Life
Running a small business requires entrepreneurs to wear many hats – a challenge that most business owners embrace. In fact, more than two-thirds of business owners (70%) would recommend that a friend or family member go into business for himself or herself. Small business owners are most enthusiastic about being personally accountable for the success or failure of their ideas (33%), being their own boss/not having to live by anyone's rules (28%), wanting to make money from a good idea (13%) and continuing a family business (12%).

Business owners cite several frustrations with running their firms, however, and nearly a quarter of respondents (23%) describe their business experience as an “uphill battle” in the coming months. Topping their list of hardships: Not having enough leisure time (23%), followed by paying higher prices for the same services that big businesses receive (18%), having difficulty finding the money needed for growth (18%), developing the right skills to manage every aspect of running a business (15%) and dealing with the pressure of meeting payroll (6%). Not surprisingly, then, 13% say that running a business gives them “24/7” stress.

One way to alleviate stress is to spend more time with family. More than one in four (27%) business owners say that “getting involved around the house with chores, homework and grocery shopping” is the most important commitment they make to their family. One-quarter (25%) always take family calls when they are at work; another 13% carve out specific time to be at home with family; 12% always take a vacation with family; but just 8% plan to have dinner at home several times a week.

Defining Success: Vast Differences Exist Between the Sexes
What is the meaning of success to a small business owner? Interestingly, women are most likely to feel they are successful when they “create good relationships and a sense of community” through their business (39% vs. 22% of men).

According to the survey, 29% of respondents overall say that success in business means striking a balance between career and family; 19% say it means living the lifestyle they want; and 13% feel they are successful only once they have reached long-term financial stability.

Women Lag Behind Their Male Counterparts in Retirement Planning
Long-term financial stability, however, eludes the 41% of business owners overall who say they are not on track to save for a comfortable retirement. Women respondents are more likely (50%) than their male counterparts (36%) to say they are not on track for retirement. One-quarter (25%) of women business owners report they are “very worried” about their ability to save, while just 10% of men and 16% of all respondents say the same.

“Given the demands on their time and the need to manage the ‘here and now,' it's not shocking that so many busy small business owners are finding it difficult to build a comfortable retirement,” said Sobbott, OPEN's president.

Small Business Owners Want to Call the Shots
Small business owners say they are most driven by living and working by their own rules (43%). Nearly one-quarter (23%) say that every day is “like a box of chocolates”— they never know what will happen next. Others enjoy running a profitable business (15%), learning new things about themselves as a person and as a business owner (10%) and “living on the edge” through their business (4%).

Certain personality traits can stunt small business growth. According to the survey, 28% of business owners identify being “too hands on” as the personality trait that most negatively impacts their business, followed by “playing it too conservatively” (22%), being too impatient (15%), taking too long to make decisions (9%) and taking too many risks (8%).

Survey Methodology
The OPEN from American Express Small Business Monitor, released each spring and fall, is based on a nationally representative sample of 618 small business owners/managers of companies with fewer than 100 employees. The survey was conducted via telephone by International Communications Research from April 4-April 21, 2006. The poll has a margin of error of +3.9%.

About OPEN from American Express
OPENSM is the American Express team dedicated exclusively to the success of small business owners and their companies. OPEN supports business owners with unparalleled service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business. Specifically, business owner customers can leverage an enhanced set of products, tools, services and savings, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. To obtain more information about OPEN, visit OPEN.com, or call 1-800-NOW-OPEN to apply for a card or loan. Terms and conditions apply.

American Express Company (www.americanexpress.com) is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, business services and international banking.