CEO confidence is up even amidst talk of a double dip recession, according to a survey
of its members done for Vistage, a San Diego-based association of chief executive
officers of small- to medium-sized businesses.

While CEOs of small to medium sized businesses have lowered their expectations for the
pace of growth in the overall economy, they remain confident that, over the next twelve
months, they will increase revenues and profits, as well as hire new employees, says
Vistage.

In the fourth quarter of 2008, CEO confidence indexed at 48.7 – an all-time low since
the survey began in 2003. According to survey director Richard Curtin a professor at
the University of Michigan, who has directed the survey since its inception, CEO
confidence rose to 94.4 this quarter, marking the sixth consecutive quarterly increase.

“CEOs of small to medium size companies have adjusted to the lean economy, are doing
more with less, and have positioned their companies for success,” says Vistage
International Chairman and CEO Rafael Pastor. “Their continued confidence sends a
strong message that small and medium sized businesses will be among those who will
lead our overall economic recovery."

Other highlights of the survey of more than 1,600 CEOs of small to medium sized
businesses, all of whom are members of Vistage International include:

• Planned declines in employment fell to just 9 percent in the second quarter of 2010,
  the lowest level in three years. Plans to expand their workforce were reported by 44
  percent of all CEO's in the second quarter survey, unchanged from the prior quarter.
  Among all firms, however, 47 percent expected to keep the overall number of employees
  constant, up from 44 percent in the prior quarter and the highest percentage in the
  past decade.

• Growth in revenues was expected by two-thirds of all firms in the second quarter,
  unchanged from the prior quarter but well above the half of all firms that expected
  revenue gains a year ago. Rising profits were expected by 54 percent of all firms in
  the second quarter of 2010, a level that has remained unchanged over the prior three
  quarters.

• Most CEO's (87 percent) believe that the federal government does not understand the
  challenges faced by small businesses well enough to expand their business opportunities.
  These CEOs are concerned about increased taxes, regulations, and government intrusions
  that hinder entrepreneurship.

• Nearly 25 percent of the CEOs surveyed say they are or will be doing business in China,
  a remarkable percentage of SMBs.

Methodology
The report is a compilation of responses from 1,617 CEOs of small- to mid-sized companies
in the United States, surveyed between June 24 and July 2, with a margin of error of
1.6 percentage points.