Two recent polls show optimism tanking among small business owners nationwide. Although the NFIB Research Foundation saw a very slight uptick (.05) in confidence from its November report, its January Business Optimism Index resulted in “recession level” readings and the second lowest index since March. The poll found 70% of business owners surveyed described the current period as a bad time to expand.
The most important small business problems cited in December 2012 were taxes, government regulations and red tape, and poor sales.
The NFIB has been conducting monthly surveys since 1986.
Meanwhile, a Wells Fargo/Gallup Small Business Index conducted Nov. 12-15 found that business owners were more pessimistic than at any time since July 2010. Its Future Expectations Dimension of the index, where owners rate their business expectations for the next 12 months, also fell to its lowest level since July 2010.
Twenty percent of small business owners expect jobs to decrease at their companies over the next 12 months; 34% expect their companies’ capital spending to decrease; 30% expect poor cash flow (the highest Gallup has measured to date); and 28% of owners expect to be in a “poor” financial position 12 months from now.
