As many of you are aware, I have been critical of reports that highlight small business confidence without including actual reasons behind the confidence. Although confidence can lead to a business’ success, confidence alone guarantees nothing. It is with great pleasure that I now reveal an optimism report that connects confidence with the growth of small business revenue for 2017. According to the Wells Fargo/Gallup Small Business taken between Jan 3-9, ” small-business owners’ optimism is now just shy of the record high in the 15-year trend of +114 registered in December 2006.” This high level of optimism is the result of “improvement in small-business owners’ reports of their revenues. A majority of owners (52%) now say their revenues increased a little or a lot in the past 12 months, higher than at any point since 2007. And 66% of owners expect their revenues to increase in the next 12 months, a sharp increase from the 58% measured last quarter, and the highest recorded in this 15-year trend.”
This is fantastic and also reveals that many small business owners are positive about their cash flow for the first quarter of 2018, “with 77% expecting it to be very good or somewhat good in the next 12 months. This is, by two points, the most positive expectation about cash flow in the history of the index.”
It now appears that small business owners are moving closer and closer to pre-recession levels than ever before and that is a great thing. Despite the political debates and Russia news throughout 2017, the economy is strong and looks to continue to be favorable for small businesses in the future.