Although American small business owners have a less positive outlook on the economy than they did six months ago, many are still confident in the growth potential of their own companies, according to the results of an online survey conducted by the National Small Business Association.
The survey, which included 625 business with fewer than 500 full-time employees, found 28% of small business owners plan to hire new employees in the next several months. That’s up from 23% who said the same six months ago.
“Despite the dip in broad economic outlook, there was a notable jump in small business owners who say they plan to hire employees as part of a growth strategy in the coming 12 months,” NSBA President and CEO Todd McCracken says in a press release. “The 28% percent of small firms indicating their intention to add new workers is the highest this indicator has been in more than seven years.”
Also, 76% of small business owners said they had increased wages in the last year or planned to in the coming year. However, at the same time that those surveyed said they predicted overall growth at their own firms, a majority of small business owners also said they believe the national economy to be the same or worse off than it was six months ago—and 54% said they predicted the economy wouldn’t grow in the next 12 months.
The results also show many small businesses are carrying more debt this year too, up 8% from December 2014. The average debt held by the businesses surveyed increased from $933,985 to $1,054,677. About 40% predicted rising interest rates to be a problem for their businesses in the coming year, up from 33% six months ago.
The NSBA, a nonprofit that lobbies for small businesses, says the rise in concern about interest rates could indicate economic insecurity, noting it could also be a result of growing businesses heightened sensitivity to news about interest rates as they seek financing.
—Deanna Narveson
