The National Small Business Association (NSBA) today released its 2011 Year-End Economic Report which shows a decidedly more positive outlook for America’s small businesses, with important gains in several key indicators. Most notably, more small-business owners report being confident about the future of their businesses than at any time in the last three years, up from 64 percent just six months ago to 75 percent today.
“Despite some cyclical ups and downs we’ve seen in the past several years, this report indicates real growth for the small-business community,” stated NSBA President Todd McCracken. “Although we are far from where we need to be, it appears that small businesses have turned an economic corner.”
While the majority of small-business owners (66 percent) continue to anticipate a flat economy in the coming year, the number expecting a recession was more than cut in half at 14 percent, down from 30 percent six months ago. Additionally, the number of small businesses expecting economic expansion in the coming year nearly doubled from 12 percent to 20 percent in six months.
Revenue growth was at its highest point in more than three years with 46 percent of small businesses reporting increases—up from 39 percent six months ago. There was a commensurate drop in those reporting decreases in revenue from 37 percent to 31 percent. And while job growth didn’t experience the same kind of growth—it remained unchanged at just 22 percent reporting increases—the number of small businesses (23 percent) reporting employment decreases was the lowest it’s been in three years.
When asked which issues are most important for policymakers to address, small businesses overwhelmingly ranked reducing the national deficit number one—up to 44 percent from 34 percent six months ago—followed by reducing tax and regulatory burdens and reigning in the costs of health care. Along those lines, there was a marked increase among small-business owners who cited regulatory burdens as a major challenge for their business—up from 31 percent six months ago to 40 percent today.
“Although this report is by far the most positive we’ve seen in quite some time, it is imperative policymakers not mistake these gains for a task completed,” stated NSBA Chair Chris Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly. “There are countless issues that continue to hinder small businesses.”
Please click here to access the 2011 Year-End Economic Report.