Survey: Small Businesses Expecting Growth, Ready to Invest
Thank you to Spark Business from Capital One for sponsoring this feature highlighting small business.
The National Federation of Independent Business surveyed 10,799 businesses, and found something of a mixed bag. The survey, conducted just before the presidential election, stated that a record 23% of small business owners were still unsure about where business conditions would go over the six months. Is the economy still in the doldrums, before the winds of recession move us into darker waters? Perhaps not.
An almost equal number of small businesses surveyed, 22%, stated that they planned some form of capital-based investment or improvement in their company over the same period of time - up 1%. So what’s causing the disparity, and which of the two concerns will win out, at the end of the financial day?
One cause of the lack of certainty may be concerns over the possibility of higher taxes, as the healthcare landscape shifts with the Patient Protection and Affordable Care Act (PPACA) taking effect over the next 2 years. Another cause could be concern over the looming “fiscal cliff”, as a host of tax breaks are reaching their deadline.
While these concerns may be causing many small business owners to feel unsure about taking on new hires, the overall reduction in the small business workforce slowed over October, ending 4 straight months of layoffs. Which means there are some small business owners who see silver linings, and are moving forward, regardless of healthcare shifts or fiscal cliffs. In fact, 11% of the owners surveyed reported adding almost 3 workers per firm over the past few months.
Sales outlook in the NFIB report was also on the slight upswing. And as consumer confidence grows, there also goes the economy–and possibly your business.Continued on the next page