Despite a small dip in the NFIB Small Business Optimism Index, confidence remains high among entrepreneurs for the month of October. The dip of 0.5 points can most likely be attributed to the uncertainty surrounding early November midterm elections, but overall many small business owners saw a positive future ahead. With the ending of midterms, it will be interesting to see the reaction moving forward with a split Congress and a falling stock market.
According to the NFIB report, 60% of small business owners are looking to hire at least one worker moving forward, along with higher compensation packages. “The persistently tight labor market is pulling compensation costs higher. Of the 60% of small business owners looking to hire, 53% reported they had few or no qualified applicants for the open positions. The difficulty finding qualified workers is the number one challenge for business owners.”
With a strong economy and 3% GDP growth, many entrepreneurs will more than likely end 2018 with solid growth margins. Entering 2019, things may change as a downtown is expected in many industries after almost a decade of continued growth (the longest growth period in recent global history).