National Federation of Independent Business (NFIB) recently conducted a survey of small business enterprises that are operational in the U.S. During its survey, NFIB found that optimism is coming back and small business sentiment has grown in August compared to the previous months.
The small business optimism has no doubt improved, but it is more or less the same as during recession days. The NFIB optimism index found that in August, Small Business sentiment rose to 92.9 compared to the 91.2 in July. This is a slight increase, just 1.7 points. So, business owners’ optimism has remained the same as during recession days.
At present few businesses are investing in inventory and small business spending remains low, and hiring is still very weak. Uncertainty in the economy is persitent and so small businesses are shy making financial commitments. Presidential elections has further added a jolt to the overhang as capital expenditures for small businesses are at a halt.
As small businesses are not investing in new projects, it resulted in weak employment growth with just 96,000 new jobs created in August. It is true that the unemployment rate declined to 8.1 percent but then due the prevailing uncertainty in the economy the number of jobs that are being created remain elusive or below the mark.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com