Business owners express less optimism regarding growth opportunities this year than prior years, according to the 2013 Small Business Economic Forecast by Pepperdine University's Graziadio School of Business and Management along with Dun & Bradstreet Credibility Corp.

In fact, 36.2 percent of respondents are concerned about the probability of a recession in 2013, up from 28.4 percent in 2011. At the beginning of 2012, 54 percent of respondents reported being more or somewhat confident, but the figure dropped to 45 percent at the start of 2013.

"Small-business owners, who are optimistic by nature, are still taking a highly cautious view of the economy and their personal business prospects," says John Paglia, Ph.D., associate professor of finance and founding director of the Pepperdine Private Capital Markets Project. "The 'foxhole mentality' among small-business owners to dig in and stay low has the potential to slow the still fragile recovery."