According to MetLife and the U.S. Chamber of Commerce's Q2 Small Business Index, small business owners are feeling more confident about their businesses despite recent inflation. In fact, the index score hit its highest since 2019. Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, shares more about this in the latest episode of the U.S. Chamber of Commerce Small Business Update.
Key Takeaways
1. MetLife and the U.S. Chamber of Commerce's second quarter Small Business Index showed that small business owner confidence increased significantly, reaching its highest score since 2019. This is a testament to the resilience and adaptability of small businesses in managing their cash flow despite ongoing economic challenges such as inflation and high interest rates.
2. Small business owners are not just optimistic, they are also very optimistic about their revenue prospects over the next 12 months, with 73% indicating a bullish outlook. This level of optimism is not just high, it's the highest it has been since the index began seven years ago, signaling strong confidence in economic stability and growth opportunities following the election.
3. Despite rising confidence, small businesses still face significant challenges. Inflation remains a top concern, along with persistently high costs of goods, employment and borrowing. There is a notable disconnect between positive outlooks for individual business performance and a more cautious view of the national economy, with only 34% of small businesses having a positive outlook for the broader economic environment.
Four. Economic activity has been temporarily halted ahead of the presidential election, and companies are taking a wait-and-see approach, but there is underlying optimism that the economic environment will stabilize after the election, allowing companies to expand, hire new employees, and respond to increased demand.
Five. The U.S. Chamber of Commerce continues to recognize and celebrate the resilience of small businesses through initiatives such as its annual Co-100 Small Business Competition, which aims to recognize the nation's best small businesses and saw a record number of submissions this year. The competition allows small business owners to showcase their accomplishments, highlighting their pride and determination.
“Small businesses have shown incredible resilience and the index has moved up slightly due to confidence in cash flow, which really shows the resilience of Main Street employers.” – Tom Sullivan.