Entrepreneurs report low expectations for economy
It's still a winter of discontent for small-business owners.
The National Federation of Independent Business said Tuesday that the number of entrepreneurs expecting better business conditions remained "overwhelmingly low" in January. Thirty-five percent of respondents said they believe conditions will worsen in the next six months. That was down from 45 percent in December, but was still the fourth-worst reading in the survey's 40-year history.
With 100 as its baseline, the federation's Small Business Optimism Index came in at 88.9 in January, compared with 88 in December and 93.9 in January 2012. Just 6 percent said the next three months would be a good time to expand, and 7 percent said they expect to increase pay in the next quarter.
Asked to name their biggest problem, small businesses listed both taxes and government regulations, which tied for No. 1, at 21 percent. Poor sales ranked second, at 19 percent. Cost and availability of insurance got 8 percent, while competition from large businesses garnered 6 percent.
More owners reported hiring than staff cuts, but the improvements weren't enough to keep up with population growth, or with expansion in early 2012.
Bill Dunkelberg, the federation's chief economist, blamed survey results on a shrinking fourth-quarter economy, as well as higher taxes, rising health insurance costs, increasing regulations and "just plain uncertainty."
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512. Follow @J_Robison1 on Twitter.
