Drew Dixon
A recent survey from the National Federation of Independent Business (NFIB) shows optimism is on the upswing among small-business owners and operators.
The 24-page report issued this week by the NFIB shows most components of the survey indicate small businesses are feeling more confident about the economy and will take steps in the coming months that reflect that optimism.
“The Optimism Index rose by 8 points in November to 101.7, after 34 months of remaining below the 50-year average of 98. This is the highest reading since June 2021. Of the 10 Optimism Index components, nine increased, none decreased, and one was unchanged,” the quarterly report said.
Some of the most positive indicators in those components include current job openings, as 36% of small businesses say they have positions available they can’t fill. An equal percentage of those small-business operators say they expect the economy to improve, and 18% said they have plans to increase employment.
In terms of potential revenues and sales among small businesses, the outlook is increasingly positive, according to the NFIB report. Many components of that part of the survey show the strongest responses in years.
“A net negative 13 percent of all owners (seasonally adjusted) reported higher nominal sales in the past three months, 7 points better than October’s worst reading since July 2020. The net percentage of owners expecting higher real sales volumes rose 18 points to a net 14 percent (seasonally adjusted), the highest reading since February 2020,” the report said.
A big contributing factor for the uptick in optimism among small-business owners was the end of a long and divisive presidential campaign. Following the end of that election, many small-business owners are ready to get back to business.
“The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners,” said NFIB Chief Economist Bill Dunkelberg.
“Main Street also became more certain about future business conditions following the election, breaking a nearly three-year streak of record high uncertainty. Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures. In addition, small business owners are eager to expand their operations.”
NFIB officials said they compiled the results of the survey after randomly selecting members of the organization to undergo a questionnaire that constituted the findings.
