Small business owners may be down about year-end sales, but they retain a positive outlook going into 2017.
This is more than fine.
In a year that has been regarded by some as topsy-turvy, with its fair share of odd developments and tragedies, small businesses are feeling pretty good about the future.
Despite anticipating a slower holiday season, small businesses are still confident about improving growth for 2017, according to Capital One’s Spark Business Barometer.
KEEP UP WITH THE LAST SMALL BUSINESS ECONOMIC TRENDS.
Only 23 percent of small business owners surveyed expect an increase in year-end sales, falling from 29 percent last year. On the flip side, 49 percent of small business owners reported “good” or “excellent” business conditions in their job area heading into 2017, an increase from the 41 percent surveyed during the first half of 2016 (and an increase overall from the average 48 percent since the Spark Business Barometer began tracking business conditions three years ago).
Also, 12 percent of small business owners have faith their business conditions will be “much better” in the next six months (up from the 9 percent who said the same earlier this year), showing that despite sales numbers, owners still retain a positive outlook.
“It is encouraging to see many businesses improving their outlook about the future, after a brief dip in confidence earlier this year,” said Buck Stinson, SVP of Small Business Card at Capital One. “While concerns related to costs and regulations still exist, we are glad to see that optimism is on the rise.”
This boost of confidence is reflected in other surveys as well. Speaking strictly of the current holiday season, a Lendio survey taken of small businesses with fewer than 100 employees in November found 81 percent are confident this season will be successful for their business. Thirty-percent of owners listed lack of capital as the biggest reason for their lack of confidence.
There are several factors at play here, but the main one seems to be the election and the result of Donald Trump moving into the White House, if NFIB’s Small Business Optimism Index from November is anything to go by.
“What a difference a day makes,” said NFIB President and CEO Juanita Duggan. “Before Election Day, small business owners’ optimism was flat, and after Election Day, it soared.”
The November index, which improved 3.5 points to reach 98.4, “is just above the 42-year average, and only the third time since 2007 that it has broken into above average territory.”
Now it’s up to the President-elect to turn these small business owners’ dreams into reality.
Related:
NFIB Small Business Jobs Report
