Small-Business Outlook Continues to ImproveFebruary 27, 2014
Molly Brogan Day
Washington, D.C. – The National Small Business Association (NSBA) today released the 2013 Year-End Economic Report which shows continued gains in economic outlook and confidence among America’s small-business owners. In fact, when asked to compare today’s economy with five years ago, nearly half, 48 percent, said it is better off, the highest economic outlook in six years.
“Despite the fact that 27 percent of small firms anticipate economic expansion in the coming year, double what it was at the beginning of 2013, the fact that the majority still believe there will be a flat or recessionary economy in the coming 12 months is driving the continued stagnation we’ve seen in small-business hiring,” stated NSBA President and CEO Todd McCracken.
While there was modest growth in the number of small-business owners who expressed confidence about the future of their own business (66 percent) it is worth nothing that one-in-three lack confidence.
There was very modest growth in small-businesses revenue, profits and hiring over the last 12 months with greater increases in projections for the coming 12 months. Nearly half of small firms said they increased employee compensation in the last year and the same number said they plan to do so in the coming year.
While the last six years have seen a small-business community struggling to stay afloat, the availability of capital has become scarce, at precisely the wrong time. Fortunately, it appears that financing is improving with 70 percent reporting they are able to obtain adequate financing, up from 65 percent six months ago.
“Economic uncertainty continues to be the most significant challenge facing small-business owners today, making lawmakers’ ability to work together on the key issues facing our nation all the more critical,” stated NSBA Chair Jeff Van Winkle of Clark Hill in Grand Rapids, Michigan. “The number one thing small business wants Congress and the administration to do is end the partisan gridlock and work together.”
Please click here to download the full report.
Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.