In just about every aspect of life, uncertainty can lead to anxiety. Whether it is your personal situation involving finances or job security, or whether it is the stock market and its volatility index rising due to economic uncertainty. Whatever the case may be, the fear of a downturn in the economy is no longer at the top of the list for small businesses. In an interesting turnabout, the main fear from entrepreneurs is now their brethren in big business.
These findings come in a recently released small business survey by U.S. Bank. According to Ross Carey, the executive vice president of U.S. Bank, “Businesses loathe uncertainty, so their confidence in the future is a positive sign.”
The burden of taxes is believed to be reduced by the Trump tax bill, leaving small businesses more positive on the tax front. By almost two to one, those surveyed expect a positive reaction for their business as a result of such cuts.
During Small Business Week President Trump heaped praise on the hard-working entrepreneurs of America. He knows that this little engine that could supply the majority of new labor in the United States. In a recent tweet, the President congratulates success.
Another positive signal of the strength of the current entrepreneur is their ability to plan for the future by putting an exit strategy in place. One third of small businesses have done this and plan on, among other things, turning the business over to family or selling out completely.
Separately, CIT Direct Capital, the national online small business lending unit of CIT Group, announced the results of its new CIT Survey conducted by The Harris Poll revealing that nearly three out of four small businesses in the U.S. plan to expand their product and service offerings this year. Other positives taken from the survey are that small businesses expect to expand hiring this year, as a result of the Trump tax cuts.
With all the enthusiasm, there are still areas that concern business. Data security is the top concern for small businesses (68%), followed by rising inflation rates (61%). Security is a micro issue where these businesses can be active. Inflation is not in there control, but forecasting interest rates is important, seeing that one third of capitalization is coming from secured bank loans.
Another initiative by CIT is its Launch+Grow campaign. You can find wonderful success stories where entrepreneurs give you tips and tricks that made them successful. You can access this at CIT Launch+Grow.
Both the U.S. Bank and CIT surveys show that these are opportunistic times for entrepreneurs and small business growth. Beginning with the Trump Tax cuts, and the belief that the economy is more stable, small businesses, for the most part, are doing exactly what they are supposed to do. They are creating wealth for those who are risk takers, and are rewarding employees in growing numbers by not just additional hires, but by giving incentives like equity options and units in the business, which is a powerful motivator.