Right now may seem like a tough time to start or own a small business. With concerns about the Affordable Care Act (Obamacare) and talk of raising the minimum wage, some people may wonder if this is the right time to venture out and live a life-long dream of owning their own company. However, so long as you seek out the advice of a knowledgeable and licensed attorney, now can be a great time to take that leap. And new surveys show that those who have done it are more optimistic than they have been in years.
Nationwide Small Business Owners Feel Circumstances Have Improved
The Central Valley Business Times reports that small business owners nationwide have an improved outlook according to the U.S. Bank Annual Small Business Survey. The survey measures the opinions of thousands of small business owners, and has done so for the past five years. Those surveyed are truly small business owners by any standard, as they all report less than $10 million in annual revenue. Half of the businesses have under $200,000 in annual revenue. This is the first time it has shown that the majority of small business owners are optimistic about the economy, saying it is in a state of recovery or expansion. This compares to the 2010 survey where nine out of ten small business owners classified the economy as being in a recession.
The survey also shows that over two-thirds of business owners believe their business is in good financial health. They are also optimistic about the future, with four times as many business owners thinking the economy will grow next year as think it will grow this year.
California Small Businesses Even More Optimistic
The U.S. Bank survey found an incredible rebound in optimism amongst small business owners in Southern California. The number of owners optimistic about the economy increased by 15 percent over last year. It also increased by 14 percent in neighboring Arizona.
The Sacramento Bee reports another study also shows optimism amongst California small businesses. Their report deals with the latest American Express OPEN Small Business Monitor, which has been released twice a year since 2002. This survey is another national survey of owners of businesses with fewer than 100 employees. The latest survey shows 56 percent of California businesses are optimistic about the next six months and 85 percent have had increased employee productivity over the past year. A full 50 percent of the owners intend to make capital investments in the next six months. This growth is occurring as the number of owners providing health care to their workers has increased, from 51 percent last fall to a full 63 percent this spring. While 77 percent of the owners reported having cash flow issues at this time last year, that number has plummeted all the way down to a mere 37 percent.
After years of dealing with a struggling economy, it is finally improving, particularly in California and neighboring states. Now may well be the time to put together that start-up you have been dreaming of for the past few years, and make your dream a reality.