After a rough several years brought on by fiscal uncertainties, U.S. small business owners are starting to feel more optimistic about future profits and may be more likely to feel confident enough to take out a small business loan to expand their enterprise. A new business leader outlook survey found that more than 50 percent of the 3,500 small- and mid-sized businesses polled said they expect to see an increase in sales and profits this year.
The majority of small businesses are still slightly cautious when it comes to borrowing funds, but have demonstrated more confidence in their local economies and their own future performance.
President Obama’s fiscal year 2014 budget garnered mixed reactions
The taxes small businesses face are still a major concern for many entrepreneurs. The fiscal year 2014 budget unveiled by the Obama administration drew mixed reactions from small business owners. Although the plan attempts to close tax loopholes that benefit larger organizations, opponents say the new budget does not go far enough to alleviate the taxes small businesses face.
“The sad reality is our tax code is unfair for the millions of small businesses that want to grow and expand their small businesses, and even more deterring for those who want to open their own small businesses,” the National Association for the Self-Employed said in a statement on the president’s budget proposal.
That sentiment was echoed by the National Federation of Independent Business in its reaction to the budget proposal.
The president and his administration has not yet revealed all the details, but since the White House made it clear reform will be revenue-neutral, the plan may not benefit small businesses, “who are organized as pass-through entities and pay taxes at individual rates,” the NFIB said.
Small and mid-sized business owners maintain a positive outlook
Despite the disagreement over recent decisions in Washington, 60 percent of small business owners polled said they still expect to see an increase in sales this year. In addition, 55 percent of mid-sized companies and 31 percent of small businesses claimed they plan to hire new employees this year.
Small business owners seeking financing to grow their business and increase profits can contact National Funding to learn about the small business loans and merchant cash advances.