• by Jack Loechner , Staff Writer @mp_research, January 19, 2011

An overwhelming majority of small business owners plan to spend money on their business in 2011, according to a new survey by Manta, Seventy-seven percent plan to spend in 2011 even though 85% reported they implemented across-the-board cuts in 2010.

47% have prioritized marketing and sales as their top spend, with 24% noting business development as top priority and 23% opting for marketing and advertising. 23% of the respondents said they couldn't prioritize expenditures for 2011, given the current state of their business.

Number One Priority for 2011
Priority	% of Respondents
Staff (re-hire, new hire, compensation)	10%
Tech upgrades	4
Advertising and marketing	23
Equipment/infrastructure improve	9
New product development	5
New business development	24
Insurance	2
Unable to prioritize	22
Source: Manta, January 2011

According to the study, more than half of those surveyed are likely to be considering social media in their marketing and advertising plans for 2011. 42% of the respondents said they find social media useful in connecting with their customers, and 14% plan to implement it in the near future.

Social Media Attitude (% of Respondents)
Attitude	% of Respondents
Find it useful	42%
Don't find in useful	30
Don't use, but plan to use in near future	14
Don't use and have no plans to use	8
Don't use and don't think it would be useful to me	6
Source: Manta, January 2011

The survey also queried the small business owners about their 2010 expectations and the outcome of those expectations. Fifty-one percent said they had expected business to improve in 2010, with about a third (34%) saying their expectations were right. Among the 31% of small business owners who thought business in 2010 would be about the same as the previous year, 23% said their prediction was right. And for the 18% who predicted their business would decline, 15% said their fears were correct.

Business Expectations in 2010
Expectation	Result
Expected business improvement, and was right	34%
Expected improvement, but wrong	17
Expected same and was right	23
Expected same and was wrong	8
Expected decline and was right	15
Expected decline and was wrong	3
Source: Manta, January 2011

Looking ahead to 2011, 67% of those surveyed believe the recession is not over, despite what economic experts say. Manta's survey reveals a hopeful 19% predict the recession will end in 2011

Agree That Recession Ended in June of 2009 (% of Respondents)
Opinion	% of Respondents
Yes	6%
Yes, but it ended in 2010	8
No, I see it ending in 2011	19
No, the recession is not over	67
Source: Manta, January 2011

The survey reports healthcare reform is still on the minds of the small business owner. Sixty-two percent (62%) said they are still concerned about healthcare, and 21% agreed that "there has been so much written about its impact on small business that I don't know what to think.

Thirty six percent (36%) of the small business owners surveyed said they cut their own salary last year. Despite putting less into their wallets, more than half of the respondents said they were giving year-end bonuses to their employees. Thirty two percent of the respondents said they were giving out about the same bonus as 2009.

Cost Cutting in 2011 (% of Respondents)
Action	% of Respondents
Cut staff and/or salaries	12%
Work furloughs/reduced work week	8
Cut own compensation	31
Eliminated or reduced advertising & marketing	17
Other	30
Source: Manta, January 2011

For more information from Manta, please visit them here.