Small Business Finance News

Business Owners Confidence Gets Lower, Poll Says

Written by Jenna Weiner
Published: 8/3/2011

Lack of confidence and concerns about healthcare costs continue to hamper small business growth and hiring.

Although news for small businesses has been mostly good thus far in August, the National Small Business Association said the 2011 Mid-Year Economic Report shows small businesses lack confidence.

Business Owner Confidence Drops

NSBA President Todd McCracken said that 88 percent of small business owners anticipate a flat or recessionary economy in the coming year, which is the highest that number has been in two years.

"This negative outlook is causing a growing lack of confidence among small business owners," McCracken said. The poll also said that 45 percent of businesses said they expect no growth opportunities whatsoever in the coming year, up from 40 percent in December's report.

Health care continues to be a problem, according to the poll, with about 33 percent of businesses saying they held off on hiring a new employee due to health costs.

Contrary to this report, the Insperity Business Confidence Survey shows that 32 percent of small business owners plan to add employees this year. Even so, 40 percent of businesses are now delaying their hopes for an economic rebound until the first quarter of 2012 or later. 

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