Small-business owners' confidence rose slightly this month as cash-flow concerns abated, according to a monthly survey Discover Financial Services sponsors. The Discover Small Business Watch index in June rose to 80.9, up from 78.1 in May. The Watch is a monthly report measuring the relative economic confidence among 750 small-business owners based on their responses to six questions in a telephone survey. Its creators established a base index of 100 when the Watch began in August 2006. Some 42% of small-business owners in June said they experienced temporary cash-flow problems during the previous 90 days, down from 49% who said so in May. Twenty-six percent of respondents said they believe economic conditions are improving, up from 23%. Some 57% of respondents said they believe conditions are getting worse, which is unchanged from the previous month. Small-business owners' sources of capital have remained mostly unchanged over the past year. Some 45% of small-business owners said they generate capital from their personal savings, compared with 46% who said so in June 2008; 19% use bank loans, up from 18%; 16% turn to family and friends, down from 18%; 8% use credit cards, unchanged from last year; and 4% use a second mortgage or home-equity loan, down from 5% who went that route last year.

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