Many small businesses are feeling the pinch from a shaky economy, climbing prices, and low consumer confidence. Small business experts say small businesses looking to survive difficult times must react to the times and stay nimble, watch their costs, and be innovative. Innovation does not mean reinventing the company, but rather looking for new ways to sell products or services and expanding to new markets.

Last month, for the first time since the early 1980s, small business owners cited inflation as their leading worry in a monthly survey conducted by the National Federation of Independent Business, with rising fuel costs cited as a particular concern. Fortunately, access to business credit in this tight economy is not a major concern for most small business owners.

In the survey, 35 percent of small business owners reported regular borrowing activity, which is a typical result in surveys taken over the past 15 years. Only 2 percent of owners cited the cost and availability of business credit as their No.1 business problem.

"Small-Business Owners Learn to Adapt in Economic Downturn"
Kansas City Star (07/21/08) Goforth, Alan