In keeping with the improving economy, falling consumer credit debt and bankruptcies leveling off, small business owners are maintaining their confidence. Showing increasing optimism for the second consecutive quarter, the Index score rose another 16 points this quarter, lifting out of negative territory to reach 12 on the Wells Fargo/Gallup Small Business Index survey, which gained 40 points since July 2010.
Also, this was the largest two-quarter gain in optimism recorded since August 2003. Always a strong indication of how well the economy’s doing, small business owners expect improvements in their financial situation, revenues, jobs and access to credit over the next 12 months, with 54% expecting an increase of a lot or a little, up from 44% in 4Q/10.
Specifically, 65% of small business owners expect their companies’ financial situation to be somewhat or very good, up from 59 percent in 4Q/10; 23% expect their employee headcount to increase a little or a lot, up from 18% in 4Q/10; and 36% expect credit to be somewhat or very difficult to obtain, down from 42% in 4Q/10.