Why Are Small Business Owners So Optimistic?

Why Are Small Business Owners So Optimistic?

Small businesses generate most number of jobs, and these are an important source of productivity and innovation. Owners of startups and small enterprises have not felt so much optimism at any other time. While there are challenges to find skilled workers to fill many job openings, they are trying to benefit from the economy and pursue growth. They are highly confident about the business conditions and anticipate more sales. Find out why they are so optimistic.

Controllable payroll situation

According to industry experts, the wages have got stagnant in the last 10 years. While this is obviously a point of concern, the stagnation has led to a more governable payroll situation for lots of employers. The trend is likely to go on for some time, even as people battle increasing expenses associated to healthcare regulations, paid time off, minimum wage and mandated overtime. This has made things slightly better for small business owners, as far as the payroll situation is concerned.

Cheaper, faster technology

Due to advancements, mobile and cloud technologies have become cheaper, quicker and more effective. This lets even the most modest freelancers to conduct business from anywhere and at anytime for a small monthly fee but appear as if they are operating a Fortune 500 company.

Easier availability of business capital

Tax credits and tax deductions to spend on R&D or to buy capital equipment have been finally made permanent now. There has been a huge growth in the number of loan websites, crowdsourced equity and online lenders as well as advances from PayPal, Square, Staples and other retail lenders. It is available easily for almost anyone who requests and is ready to as high an interest amount as 50% every year.

Regulation in costs

Small business owners are filled with optimistic attitude that that their costs are very much under control, at least in the near future. For quite a few years, inflation has not been a major event and no big changes can be expected in the years to come. Small business owners expect that even the increase in interest rates that are anticipated will have a very small impact on their bottom line. The costs of energy and oil prices are also at their lowest, which are set to have a very positive impact on their profits. Companies that depend on petroleum based processes and products are already experiencing the benefits of the reduction in costs.

Social and business process changes

Their optimism also stems from various changes in the social and business processes, such as business operations going increasingly paperless, increasing automation of operations, virtual locations substituting physical locations and more. Entrepreneurs suppose that processes are likely to be more accessible and simpler to customers. The trend is towards making businesses simpler. With improvements in business environment, the tools at the disposal of small business owners are likely to improve as well. With scientific advancements, entrepreneurs are likely to experience major changes in the next two decades. Clearly, there are reasons why small business entrepreneurs are so positive these days.