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Small Business Optimism Falls Slightly, while Hiring and Expansion Plans Grow
Published on Nov 22, 2010
Read 'Small Business Optimism Falls Slightly, while Hiring and Expansion Plans Grow' at 'Time to Start Up,' the small business blog by BizFilings.
A new survey from Capital One Small Business Banking finds optimism among the country's small firms to be down in the third quarter compared to the previous one. While the study does find that U.S. small businesses feel that their operations and financial conditions are stable, confidence in economic outlooks and projections have fallen slightly compared to last year.
The number of small business owners claiming conditions for their company are improving has dropped over the past fiscal year - from 39 percent in the first quarter to 32 in the second and 27 in the third.
Despite lower confidence, many small businesses are planning to make significant hiring and expansion plans over the next six months, opening room for entrepreneurs and small startups seeking to form an LLC or corporation.
According to the report, 66 percent of small businesses plan to hold business development and investment spending at current levels, while thirty percent plan to hire new employees - up four percentage points from the previous quarter.
"It is a positive sign, however, that most small businesses believe they have access to the credit and financing they need and many are making plans to increase their workforce and begin hiring again," said Robert M. Kottler, executive vice president of small business banking at Capital One.