Small business optimism is improving
Although just 21.5 percent of small businesses actually employ others, about half of the private workforce in the United States are employed by small businesses. It’s no wonder that so many politicians say that small businesses are the backbone of America’s economy. When small businesses are concerned about their financial future, it hurts economic growth in their community.
Conversely, when the economy looks promising, small businesses invest more into their organization which benefits the people where they live by providing more jobs and increasing taxes.
Most entrepreneurs believe in the future of the economy
Balboa Capital surveyed over 35,000 small businesses across the nation in June. The results seem promising, as 65 percent of these owners are optimistic about the economy and believe it will continue its upward swing during the next six months. They are expecting higher growth at the end of the year. In fact, one-third of business owners who responded to the survey expect to expand operations in the third quarter of 2015.
Of course, this could be because Balboa Capital is a loan provider and equipment financer, which means that those small businesses responsive to Balboa Capital are considering new business loans to increase their cash flow. According to Jake Dacillo, Marketing Director, Balboa Capital,
“We work with small business owners every day, and we feel it is important to gauge what they think about the economic climate and how it relates their sense of optimism. We do this by conducting small business surveys several times each year and publishing the results. This is a good way to gather information that is helpful to small business owners nationwide.”
Is the tide turning?
However, The Small Business Authority recently released their authority index for 2015, and it confirms that the small business economy is still “faring comparatively well,” although it has slowed.
Small businesses do a lot for the country. When small business owners are optimistic about the economy, it’s a good indicator that the tide is turning.