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Small Business Optimism Growing at Strong Rate, Study Finds
Published on Feb 9, 2011
Read 'Small Business Optimism Growing at Strong Rate, Study Finds' at 'Time to Start Up,' the small business blog by BizFilings.
Small business confidence is growing at the fastest rate in almost a decade, according to the most recent Wells Fargo/Gallup Small Business Index, which grew 16 points this quarter.
The index, released Wednesday, reached 12 points and has netted a gain of 40 points since July of 2010 - the biggest two-quarter increase the survey has recorded since it was launched in 2003.
"Small businesses are feeling much better about this economic recovery than they did two quarters ago," said Dr. Scott Anderson, Wells Fargo senior economist, in a statement. "It appears the change is driven by healthy gains in demand from consumers and businesses, which are leading to improvements in small businesses revenues and cash flows."
The Wells Fargo/Gallup Index measures confidence among more than 600 surveyed small business owners and can range from -400 points to 400 points, with positive figures representing general optimism.
Additionally, the study found small businesses expect improvements in their financial situations, revenues, jobs and access to credit over the next year.
Earlier this week, the National Federation of Independent Business also noted an increase in its small business confidence index, as it reached the highest level since prior to the recession last month and suggested a boost in entrepreneurship and business filings may also be on the way.