The economy may be progressing toward pre-recession levels, but many entrepreneurs are still wary of business conditions. However, despite their misgivings about the state of the economy, many small-business owners expressed optimism regarding their company’s future and potential hiring and investments in a national survey.
According to a Union Bank survey of 700 entrepreneurs, while nearly half of respondents said they felt small-business conditions had weakened during the last two years, a majority (84 percent) said they were confident their own businesses were headed in the right direction.
The cautious attitude present among entrepreneurs was likely due to the 24 percent of respondents who said they incurred layoffs in 2012, up 3 percent from 2011, and the 8 percent who said they expect to cut workforce numbers.
Still, many small business owners planned growth strategies for 2013: 15 percent plan to hire, up 6 percent from last year, and 23 percent plan to increase business spending and capital expenditures, up 3 percent compared to 2012’s survey.
“Entrepreneurs have become experts at gauging the business climate and adapting their course accordingly, so it makes sense that while confident in the direction of their businesses, they are also taking cues from the economy, balancing their increased optimism with caution,” said Todd Hollander, Executive Vice President at Union Bank.
While many entrepreneurs plan to spend more, some may have difficulty funding their expenditures. In that case, small business owners can look to National Funding for help with a merchant cash advance.