Two-Thirds of Small Businesses Report Being in Good Health

Home » Small Business » Small Business News » Two-Thirds of Small Businesses Report Being in Good Health

Two-Thirds of Small Businesses Report Being in Good Health

It seems now is still a great time to be a small business owner. In fact, after a dip during the first quarter of the year, the MetLife and U.S. Chamber of Commerce Small Business Index rose more than three points for Q2 2019. Moreover a majority of entrepreneurs surveyed expressed positive sentiments about the health of their businesses and the overall economy.

According to the latest report, 65% of small business owners described their businesses as being in good health. That figure rose to 71% among businesses aged 11 to 20 years old, while those older and younger were slightly lower (64% and 62% respectively). Notably those reporting a healthy diagnosis rose most sharply among manufacturers while fewer owners in the retail space were feeling optimistic last quarter. Nevertheless, overall, more than one-quarter of those surveyed said they plan to increase investments in their businesses over the next year.

From business health to the health of the economy at large, 59% said the United States economy was doing well. That’s an increase of six points from the first quarter of the year. Meanwhile 51% said the same of their local economies — down slightly from 53% in Q1.

Speaking to this quarter’s results, The Darling Company owner Lexi Montgomery told the U.S. Chamber of Commerce, “It’s an excellent time to be in business. Tech is rapidly expanding, and there are lots of contract opportunities for those who don’t want traditional 9-to-5 jobs. Plus, because people have a lot of freedom to make decisions, and subliminal marketing has become quite advanced — people are spending a lot more money. The market is good for everyone, especially business owners and first-world consumers.” Similarly, DIGR president and chief architect Eric Axelrod said, “The overall strength of the economy is a big driver of perception. Small manufacturers are especially optimistic because consumer spending is on the rise. The shift to ecommerce and away from wholesale toward direct-to-consumer is helping most of them in the short term as brick-and-mortar sales continue to move to online sales.”

The responses recorded by MetLife and U.S. Chamber of Commerce’s Small Business Index seem to reflect similar polls conducted by the National Federation of Independent Business and others, which each show small business optimism holding at historic highs. Despite continued declines in some sectors such as retail, the 16 point optimism increase seen in manufacturing goes to show that even long-suffering verticals can’t be counted out. With the expected Federal Reserve rate cut waiting in the wings — potentially lowering the cost of small business borrowing and expansion — it will be interesting to see if the third-quarter results bring similar increases to small business sentiment.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Gemini Plans Crypto Rewards Credit Card

With Bitcoin and cryptocurrencies once again garnering a ton of public attention, there seems to be a renewed interest in making such assets as accessible as possible. This not only includes the likes of PayPal allowing users to buy Bitcoin and other tokens but also introducing ways for customers to...

Walgreens Planning Co-Branded Credit Card with Synchrony

It seems that Walgreens has a plan to keep customers' wallets healthy. This week, the drug store chain announced that it would be expanding its line-up of financial services, including debuting a co-branded credit card product. The upcoming card will integrate with the recently-launched myWalgreens loyalty program, giving customers the...

Visa and Plaid Call Off Acquisition Plans

One of the biggest FinTech deals of the past year will no longer be going forward. This week, Visa and Plaid announced that they have mutually agreed to terminate their merger plans. Visa originally intended to pay $5.3 billion for Plaid in an acquisition that was first announced almost exactly...