How low can small businesses' confidence in the U.S. economy go?

The news isn't great: For small businesses with five or fewer employees, confidence has hit a record low, according to the monthly Discover Small Business Watch, which just came out and reflects the past 30 days.

August will make it two years that this index has been taking the pulse of 1,000 small-business owners in regard to general economic conditions, business growth and business spending. From May to June, the monthly index fell 10 points, from 81.8 to 71.8. In fact, numbers were down across the board. Among June's key findings:

• 79% think the economy is worsening (71% in May).
• 53% say economic conditions for their own business are also getting worse (47% in May).
• 42% say they have experienced cash flow issues during the past 90 days (39% in May).
• 45% say they will spend less on business development activities, such as advertising, inventories and capital expenditures, during the next six months; another 30% say their spending will remain status quo.

Despite the bleak outlook, 71% of small-biz owners think the entrepreneurial paths they've chosen will help them achieve the American dream. In addition, 59% say they'd turn down a job working for someone else, even if offered more money than they currently make. I guess you can't put a price tag on having a flexible schedule or increased independence -- the two main reasons why 52% of small-biz owners say they struck out on their own in the first place.

Where does your confidence in the economy stand? How about for your own business? Where have you cut back? Do you still think running your own business is the way to go?