The National Small Business Association has released its 2016 Mid-Year Economic Report, which shows a small-business community with ongoing concerns about the overall economy. That said, despite the majority of small-business owners projecting a flat economy in the coming year, slightly more today are anticipating economic expansion than did just six months ago.
“Unfortunately, job growth continues to linger at just 23 percent of small firms adding new workers over the past year,” said NSBA President and CEO Todd McCracken. “On the plus side, 12 percent of small-business owners said they plan to increase their workforce by more than 10 percent in the coming year – the highest this indicator has been since we started asking the question.”
Today, 72 percent of small-business owners are confident in the future of their own business – down slightly from December 2015. Although fewer small businesses reported revenue increases in the last 12 months, 45 percent said they plan to implement new advertising and marketing strategies, 28 percent plan to expand e-commerce and 25 percent plan to launch a new product line in the coming year.
When asked about policy imperatives, small-business operators responded most often with the need to reduce the national deficit. This answer was followed closely by “end the partisan gridlock,” “simplify the tax system” and “rein in the cost of health insurance.” The survey also indicated that the administrative burden of federal taxes continues to outpace the actual financial cost of federal taxes.
“Our data shows a drop in bank lending to smaller firms, which has serious implications,” added NSBA Chair Cookie Driscoll, owner of C. Cookie Driscoll Inc., based in Fairfield, Pa. “An inability to access capital caused 20 percent of small firms to reduce their number of employees.”
The 2016 Mid-Year Economic Report was conducted from July 22 through August 3.
