Small business owner confidence reaches pre-recession levels
Multiple studies have revealed that confidence is returning to America's Main Street.
The National Federation of Independent Business (NFIB) saw the Small Business Optimism Index reach its highest point since October of 2007, and an independent survey of 206 small business owners by HR firm TriNet found 74 percent of respondents strongly or somewhat agree that their businesses will grow their revenue in 2014.
The New York Times reports that small businesses are integral to economic growth, as small businesses have added 8 million new jobs in the last 20 years, while big businesses have eliminated 4 million in the same time span.
Seven out of the ten components covered in the Small Business Optimism Index grew in both job creation and optimism concerning business earnings. The index rose 1.8 points to 95.2, signaling that America's small businesses feel the worst of the recession has passed. The index showed an increase of .07 workers per business, marking the seventh consecutive month of positive growth.
Roughly half of the respondents to TriNet's independent survey shared that they plan to hire more employees in 2014, and both studies found small business owners reporting increased difficulty in finding qualified applicants. This dilemma is leading to higher wages, which in turn drives up prices.
"Inflation will begin to pick up because reports of higher compensation are growing in frequency and these costs will be recovered in higher prices," the NFIB explained in a press release. The Labor Department shows that employers added the most jobs in April of any month since 2012.
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