The Vistage CEO Confidence Index for the first quarter of 2019, reveals that 50% of small business owners had lower tax bills. The Index included answers from more than 1,700 CEOs of small and medium-sized business (SMB) in the U.S.
Vistage Chief Research Officer Joe Galvin explained the findings of the survey. He said that while the Tax Cuts and Jobs Act has not provided the universal return it was expected to, small businesses remain bullish and continue with their recruiting and hiring efforts. About 57% of the CEOs said that Act had no impact on their sales, hiring and business investment.
The research also found that business optimism has dropped to its lowest point since the 2016 presidential election, but still 70% of CEOs expect revenue gains in 2019 and more than 50% expect profit increase. Galvin explained that revenue growth expectations may be attributed to the introduction of new services and products, acquisition of other capabilities and expansion to new markets.
It was also found that 59% plan to increase their workforce with 41% planning to increase investments in the coming year. The CEOs identified cash/capital and financial management as top priorities in 2019.
Galvin advises small businesses to keep an eye on key performance indicators in case of an economic slowdown.