Seventy percent of small-business owners who took part in Wells Fargo/Gallup’s latest quarterly Small Business Index survey indicated that they are optimistic about the economy and credit availability. The results also offered insight into other perspectives among small-business owners concerning major policy shifts, such as changes in the nation’s tax laws.
When asked how they would rate the current state of the national economy, 63 percent of survey respondents indicated that it is either “good” or “excellent.”
Eighty percent of business owners surveyed described their current situation as “very good” or “somewhat good,” and 84 percent indicated that they expect their company’s financial position a year from now to be “very good” or “somewhat good.”
The results indicated that overall optimism correlated with high levels of confidence in present and future financial situations, the release notes. Sixty-two percent of respondents indicated they are optimistic about their current situation and 67 percent said they are optimistic about what the future holds for their business.
“What we’re hearing from business owners regarding their revenues and cash flow are encouraging indicators, particularly in a time when many are looking closely at their finances for tax season,” Wells Fargo’s Head of Customer Segments Andy Rowe said in a press release. “Combining these insights with their overall outlook on the economy and a healthy interest in obtaining credit paints a promising picture for businesses as they move forward through 2019.”
Fifty-two percent of respondents reported seeing revenue growth over the past 12 months and 74 percent said the same about the previous year. Additionally, 58 percent of respondents said they expect revenue gains to continue and 79 percent said they expect a “somewhat good” or “very good” cash flow rating in the future.
In terms of credit access for small businesses, the survey found that 53 percent of respondents believe that credit was “somewhat easy” or “very easy” to obtain — the highest level since 2007. Only 1 percent of respondents said credit availability was a top challenge for their business.
Small-business owners’ optimism aligns with their positive view of the overall economy, Gallup found, with 63 percent rating the U.S. economy as “excellent” or “good.” Nearly 70 percent of respondents said their businesses have the right strategy to handle adverse economic changes should they arise.
Regarding changes in the tax code enacted under the Trump administration, 51 percent of respondents indicated that the revised tax policies have “not had much effect” on their businesses. Twenty-five percent indicated that it had either a “somewhat positive” or “significantly positive” effect on their business, with 7 percent indicating the latter was true. Twenty percent said new tax policies had “somewhat negative” or “significantly negative” impact on their businesses, with 6 percent indicating significant adverse effects.