Small Business News Update - Third Quarter 2012
The National Federation of Independent Business (NFIB), a small business advocacy and information gathering organization has released the results from their latest survey, the Small Business Optimism Index. CNBC reports that the index fell by 0.1 points, “leaving it unchanged from April.”
“There is so much that is not known,” said William Dunkelberg, chief economist for the NFIB. Business owners, unsure of the future and of the long-term economic forecast at home and in Europe, are uncomfortable investing in inventory or in hiring staff. The uncertainty that small business owners are facing continues to make it difficult for them to face all spending decisions.
Dunkelberg went on to say that, “For those who responded that it was a bad time to expand their business, one in four said it was because of the political situation - not knowing who would win the election. And that we won't know until November."
But while many business owners are reluctant to move forward with growth, there are some indicators that business owners have learned to shift and adjust to the new uncertainty that may be a part of the economic outlook for the long run.
Some of the more positive indicators included a surge in some of those who were willing to indicate at least the possibility of hiring new staff. There was also a rise in the percentage of owners who reporting filling hard-to-fill job openings.
And according to a report by CNBC, “While more owners expect business conditions to worsen in the second half of the year than expect an improvement, the number of those expressing pessimism decreased.”
Still many factors are out of the control of business owners and mangers including consumer confidence and political outcomes. Weak sales are also a problem for business owners. Consumers’ lack of optimism about the economy perpetuates the problems and continues to slow growth.
Everyone agrees that small business is a critical component of a healthy and robust U.S. economy. Providing support and incentives for small businesses is an essential part of speeding the economic recovery and job prospects for all Americans.
If you need help or advice running your small business, call the experts at Horizon Business Solutions at 614-577-1700 or check out their website at www.horizonbiz.com today.
Kelli Minor Horne | 07/14/2012