Small Business Confidence Hits 3-Year High

Small Business Confidence Hits 3-Year High

Seventy-five percent of small businesses are confident about the future of their business, according to the 2011 Year-End Economic Report by the National Small Business Association.

The number of owners who are expecting a recession fell by 30 percent six months ago to 14 percent in the current survey. Continuing the upward trend, 20 percent of small-business owners predict economic expansion in the coming year, up from 12 percent six months ago.

"Despite some cyclical ups and downs we’ve seen in the past several years, this report indicates real growth for the small-business community," NSBA President Todd McCracken said in a statement. "Although we are far from where we need to be, it appears that small businesses have turned an economic corner."

Additionally, revenue growth among small businesses was at a three-year high, with 46 percent of businesses reporting growth, and fewer businesses reporting decreases in revenue. While jobs growth has still been stagnant, only 23 percent of small businesses reported a decrease in employment, the lowest rate in three years.

Riding on the coattails of the President's latest SBA announcements, small businesses ranked their greatest concerns for policy makers. Forty-four percent named reducing the national deficit as their number-one concern, followed by reducing taxes and regulations and improving health-care costs. Among those issues, small businesses were most concerned about the effect of regulations on their business, up from 31 percent to 40 percent.

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