Capital One’s latest biannual Small Growth Index shows that continuous economic growth leaves small business owners, particularly male owners, feeling optimistic about business. The survey reports results from 500 interviewed small business owners, where 67 percent stated that business conditions in their area are good or excellent, up from 60 percent a year ago, with many attributing success to the current presidential administration.
Over half of the responders felt the change in presidential leadership has been beneficial to small businesses, but many also state concern over increasing tariffs, tax policies, and, most importantly, the cost of healthcare. In the past, more than half of marketplace enrollees in the Affordable Care Act were small-business owners, and now there is concern over how smaller companies can provide coverage for employees.
The study also shows that while historically female business owners have been more optimistic than males, 69 percent of male responders praise current economic conditions, compared to the 64 percent of female responders. The optimistic responders attribute good conditions to business growth, national economic conditions, and improved business operations.
One-third of small business owners report plans to hire over the next six months, an increase from 25 percent one year ago, but are challenged by skills gap, financial resources, and a tight labor market. Many also recognize their biggest competition when hiring and retaining employees is which company offers a more attractive benefits package.
“Concerns about hiring and tax reform are not only felt by leaders of large companies, but small businesses as well. The Small Business Growth Index tells us that business owners are tackling challenges like hiring and retention with fewer resources than larger companies,” stated Brad Jiulianti, head of small business card at Capital One. “Despite these challenges, we are encouraged by the continued optimism among business owners, especially given the major role they play in our nation’s economy.”
