Nearly 60 percent of small-business owners think the Obama administration doesn't understand the needs of small firms, according to a recent survey conducted by City Business Journals Network.

More than 40 percent are less optimistic about the national economy than they were when President Barack Obama took office, compared with 26 percent who are more optimistic. Nearly half think Obama will serve only one term in office. When asked their political affiliation, 42 percent said they were Republicans, 34 percent said they were Independents, and 16 percent said they were Democrats.

The survey was based on internet interviews of 301 business owners, CEOs, and presidents of companies with five to 499 employees. City Business Journals, a subsidiary of Charlotte, North Carolina-based American City Business Journals, said the survey sample was weighted by size of business and geographical location to reflect the small-business community at large.

Do you believe the Obama administration understands the needs of the small-business community?

Yes: 26 percent; No: 59 percent; Not sure: 15 percent. 

The interviews were conducted from March 13 to March 21, a time when the public became outraged by $165 million in bonuses awarded by American International Group, a company that has received more than $180 billion in taxpayer money.

Subsequent telephone interviews with some of the survey participants show that anger over bailouts of financial institutions and automakers have colored many small-business owners' opinions about the economy and Obama.

"He's putting all this money into a big sump hole that isn't going to do anything," said Martha Gazay, owner of Pacific Travel Center in Tacoma, Washington. "I think he's bankrupting America."

"I see inflation coming," said Pat Moore, owner of Moore Enterprises, a 150-employee Overland Park, Kansas, company that provides private-duty health care.

Several small-business owners said even huge companies should be allowed to fail.

"If you didn't run your business properly and you can't survive, go away and let the strong survive, because that's the way it's always been, and that's the way it should be," said Ronnie Nudelman, owner of Whitney Printing Corp. in Buffalo, New York.

But Mark Bazrod, owner of LPI Software Funding Group in Wayne, Pennsylvania, said the banking bailout was necessary, even though he thinks banks created many of their own problems. Unlike many small business owners, he is more hopeful about the economy now that Obama is president.

"I'm much more optimistic about the economy because I think he's a smart guy, and he's approaching the problem in a systematic fashion," said Bazrod, whose firm leases software to businesses.

Bazrod also gives Obama credit for reaching out to small businesses to try to understand their needs. Other business owners, however, said Obama is out of touch.

Since Obama has taken office, how has your view of the national economy changed?

More optimistic: 26 percent; Less optimistic: 43 percent; No change: 31 percent. 

"I worry when you have someone who has never had to make a payroll," said Pamela Ledford, owner of Dynamic Truck Repair in Columbia, South Carolina.

George Corbitt, owner of Corbitt Construction Co. in Knoxville, Tennessee, doesn't think Obama understands that small-business owners have employees who depend on them to keep their companies going so they can get their paychecks.

Corbitt's company supplies specialty items to general contractors.

"All it takes is for one individual not to pay you, and you're having a very difficult month," Corbitt said. "You're fighting for every morsel of money out there, and there's not any money out there," he said.