According to a new survey, less than a third of business owners reported improved financial positions over the past year, down four points since March. Growth expectations also fell, with only 38% expecting improved financial position in the next six months, down from 47% in March.
According to Capital One’s Spark Business Barometer, small business owners are feeling less optimistic about the economy and growth compared to earlier this year.
Despite the stalled optimism, business owners plan to increase investments in key areas including: solutions that drive efficiency (34%), expanded workforces (20%), and new technology to improve client interactions (18%).
As financial markets continue to fluctuate, The Spark Business Barometer uncovered that business owners are more cautious in their spending, forecasting and overall outlook on current financial conditions.
• Fifty percent of small business owners feel business conditions in their area are fair or poor.
• Only 31 percent of business owners feel their firm’s financial position is improved compared to 12 months ago; in our last Barometer (March 2015), 35 percent of respondents affirmatively answered this question.
• When considering business outlook, 38 percent believe they will be in a better position in the next six months – a decrease of nine points (47 percent) from March 2015.
Capital One’s Small Business Confidence Score is an analysis of small business sentiment data collected by the Spark Business Barometer – looking at economic sentiment, hiring plans, recent sales, and future outlook. According to the Small Business Confidence Score, business owners are more cautious, feeling less certainty about their business’ conditions and future outlook, and more reluctant to hire additional staff in the next six months.
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