SMBs Remain Optimistic In Trying Times
Written by Ken Gaebler
The National Federation of Independent Business' most recent survey reveals a growth in the SMB optimism index.
In spite of the of weak sales consistently reported in the news, for small business owners there is a growing sense of hope for the future of their companies.
The National Federation of Independent Business reported that its monthly optimism index grew for the third month in a row, rising from 88.8 points to 89.1 points for the month of October.
While the optimism is steadily increasing, the majority of SMB owners reported that they planned to remain "cautious." More firms reported that they planned to cut more jobs than they would add.
This is likely a good plan, William Dunkelberg, NFIB chief economist, points out. "The economy may have turned, but it's a slow turn so far," he said.
Weak sales remain the top business problem and the primary barrier in SMB's attempts to get loans. In light of this, NFIB officials are surprised about SMB optimism. The trade group released a statement defining the current lack of consumer spending as "a recipe for depressed expectations."
Nonetheless, small businesses owners might be wise to keep up the morale; a recent report by the Guardian Life Index suggests motivated employees are key in small businesses' ability to draw consumer spending.
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