U.S. small business owners optimistic for ’11

Listen to this article

A poll of more than 600 small business owners nationwide indicates that their outlook for the next 12 months has improved compared to earlier in the year.

The poll, conducted by Wells Fargo and Gallup, found that the small business index, which measures business owners’ attitude on their “present situation” and “future expectations” in six different measures, improved from a total of minus 28 in July to minus 4 in November. The poll was conducted by telephone from Nov. 4 to Nov. 10, according to a statement from Wells Fargo.

Some of the six measures that make up the “small business index” include financial situation, cash flow, revenue, capital allocation spending, job hiring and credit availability.

The score for “present situation” improved markedly from  minus 26 in July to  minus 19 in November, according to the Wells Fargo statement.

“Future expectations” also jumped from  minus 2 in July to 15 in November. The 15 score is the highest since the third quarter of 2008.

“Better economic conditions including a strong lift in third quarter GDP – in particular new strength in consumer spending – are boosting small business owners’ perceptions for increased cash flows and revenues over the next 12 months,” said Scott Anderson, a Wells Fargo economist, in a prepared statement. “This improved optimism bodes well for the overall economy.”