Blog with Rob: Small Businesses: Confident or cautious?
In interesting news, the National Federation of Independent Business said its Small Business Optimism Index rose 1.8 points to 95.2 last month. That means that small businesses are feeling more confident than they have since October 2007, when the economy was slipping into the recession.
However two surveys just released warned that small business owners, while feeling more optimistic, are maintaining a cautious approach to running their businesses.
In a survey by Bank of America, 68 percent of owners said they expect revenue to increase in the next 12 month. About three-quarters cited health care costs and the federal government’s effectiveness, or lack thereof, as potential problems. Seventy percent are concerned about higher commodities prices. Only 14 percent of owners surveyed by Bank of America said they plan to apply for loans this year, down from 19 percent a year ago. For more on these survey results as well as results from a recent Wells Fargo survey, check out this article at LIBN.
So what does that mean? I find my general feelings are in line with the report from the NFIB and BOA. I’m more confident that things are turning around, but with so much looming on the horizon, I’m making smart, cautious long term decisions. What about you? Do you feel the same way? How are you making your business decisions today – are you finally making that large purchase or capital expenditure, or are you still waiting to see what 2014 brings?