Waltham, MA – June 18, 2009 – Seventy percent of small businesses anticipate moderate to significant growth in 2009 according to the Small Business Attitudes & Outlook Survey conducted by Constant Contact^®, Inc. (NasdaqGM: CTCT), a leading provider of email marketing and online surveys. Constant Contact conducted the survey in collaboration with the Association of Chamber of Commerce Executives, SCORE and ASBDC, organizations dedicated to the success of small businesses. This first of its kind collaboration ensured broad representation of small business respondents and helped to reveal the current pulse of the small business community.

“The results of the survey reveal the fortitude and perseverance that so often marks this spirited group of business owners, as well as their adaptability to meet current economic conditions,”  said Gail Goodman, CEO and chairman, Constant Contact. “These companies show us all what it takes to succeed in any economic climate. We are grateful to our partners in the survey which have given us an encouraging glimpse into the hearts, minds and attitudes of today’s small businesses.”

Small Businesses Anticipate Growth in 2009

The survey respondents’ generally optimistic outlook on growth is further highlighted by the fact that 47 percent of those that indicated expectations for moderate or significant growth in 2009 are also planning to hire additional employees.

In 2009 do you expect your business to?

If growing significantly or moderately, do you plan on hiring additional employees this year?

Small Businesses Secure Funding in Tight Lending Market

Additionally, while only 15 percent of respondents sought and secured additional financing in the past 12 months, 69 percent received funding from banks in what is perceived to be an historically tight lending market.

As Costs Increase Small Businesses Look for New Efficiencies

According to the survey, 59 percent of surveyed businesses indicated an increase in the overall cost of doing business over the last 12 months. The top areas affected by increased costs include materials and supplies (65 percent), marketing (49 percent) and taxes (44 percent).

In response, small businesses are cutting back, but are focusing predominantly on overall operating costs (49 percent) and travel and entertainment (37 percent) rather than headcount reductions.

How has your cost of doing business changed in the last 12 months?

Have you taken any of the following actions in response to the current economy?

In which areas of your business have you seen an increase in costs during the last 12 months?

Small Businesses Market Smarter

According to survey results, more than 70 percent of small business respondents felt the biggest challenge in running their business was marketing effectively with limited resources. Respondents identified marketing (62 percent) and sales and new business development (50 percent) as the areas in which they need the most help.

Twenty-nine percent of survey respondents indicated they have reduced their spending on marketing, but are taking advantage of less expensive online marketing methods like email marketing. Seventy-four percent of surveyed businesses said they regularly conduct outbound communications via email marketing (97 percent) or their website (68 percent).

Do you conduct outbound communications with your customers on a regular basis?

If yes, what avenue do you use to conduct your outbound communications?

How do you feel you are keeping up with technology?

Small Businesses Make Small Steps Toward Social Media

Small businesses that have been in business for 10 or more years find it more difficult to keep up with new technologies (28 percent). Those mature businesses are also more likely to rely on traditional marketing methods such as direct mail.  Newer companies (those who have been in business for one-five years) are more likely to use social media tools such as blogs, Facebook and LinkedIn.

Survey results also indicate that social media tools have begun to penetrate small business’ communications strategies; however, few small businesses use these tools regularly, though most indicate an interest in doing so.

Are you using any of the following online tools to market your product or service?