LI businesses improve amid gloomy outlook

The outlook for small businesses remains glum, according to the National Federation of Independent Business' monthly small-business optimism index.

The survey released Tuesday reported a 0.1 point dip in June's figure -- a consecutive four-month decrease -- adding to the gloom created by reports of weak job growth and lower consumer confidence.

But there are mixed opinions on Long Island about the future of small businesses -- which make up a major portion of the economy, as more than 98 percent of Long Island companies employ fewer than 100 workers.

A fairly prosperous and stable middle class and proximity to New York City have helped small businesses on Long Island weather the effects of the turbulent economy better than other parts of America, experts said.

"There's enough income on Long Island because we have a relatively wealthy population -- that's above average -- and there's enough expenditures here so that the businesses that do retail can fare pretty well," said Hofstra University economics professor Martin Melkonian.

Although the recovery has been stagnant in recent months, many Long Island business experts said current conditions are still much better than when the recession was in full swing.

"I had two start-ups in the last 24 hours, and both of them are going forward," said Gloria Glowacki, the associate director of the Small Business Development Center at Stony Brook University. "Now a year ago, that would not have happened. To me, that's great news."

Larry Davis, owner of Bali Two Llc, said he put his small contracting company on hold in 2008 in the midst of the economic downturn and turned his focus back to his law practice. He represents small builders and said those small companies are taking on more varied projects, and expanding their client base has helped keep cash flowing in.

"Pessimism about future business conditions and expected real sales gains" contributed to the lowered optimism index, the NFIB said. There was a four-point improvement in hiring expectations, with 3 percent of businesses planning to hire in the next three months.