Those who have a small business are becoming more optimistic with the economy and their businesses as time progresses. It seems that business owners are starting to see the bright side of business once again. The Gallup Small Business Poll shows results that are surprising to many, as they seem to be very upbeat and optimistic about the future in small business.
Close to half of small businesses are reporting that their businesses are now bringing in more revenue than they were 2 years ago. In fact, many businesses are considering expanding, have hired new employees, and are offering raises to already established employees. The revenue increases are one reason why so many businesses have an optimistic outlook on how the future is going to pan out.
More Hiring, Less Firing
Compared to a few years ago, more businesses reported that they are no longer firing people, but are in fact actually hiring more people. This is a key indicator that the economy is turning and small businesses are once again starting to take off and grow.
Thanks to the increased revenues and abilities for small businesses to expand if they wish, the average wages earned is growing higher. The poll found that more small business owners have planned to increase their employee’s earnings this year, than any other year since 2007. Additionally, the PNC Economic Outlook survey found that 20% of business owners planned the increases in the next 6 months, with over half of those raises increasing pay by 3% or greater. Increases are also seen in the Bureau of Labor statistics report, which shows a 12% hourly wage increase as of January of this year.
Loan Access Improves
One of the main reasons that we are seeing an increase in small businesses, is due to the loans becoming easier for these businesses to get a hold of. In the past few years, business loans were only given to larger companies, while new, less established businesses were left to struggle on their own. Gallup reports 1/3 of businesses have pointed out that it is much easier for them to get loans than it was at this time a year ago. Not only are these loans easier for businesses to get, these smaller businesses actually want to take the financial risk with a loan, which is something that has not been seen in quite a while. This just shows how optimistic these business owners are becoming for the future of the economy.
Small businesses are considered to be a fundamental part of the economy. When these businesses struggle, it does impact the economy greatly. With the results from this latest poll though, it seems that things are finally turning around. The spirit of new business is finally coming back, which is only good news for the economy, as more jobs means a higher employment rate. It seems that the time has finally come in which the small business can succeed in a market that is dominated by larger corporations.