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Business owners optimistic on economy but keeping a tight hold on surplus spend

Nearly double the number of small business owners are feeling good about the economy than a few years ago.

October 16, 2015

Nearly double the number of small business owners are feeling good about the economy than a few years ago and a whopping 92 percent describe their business health as growing or stable, according to new research data.

This year 45 percent of business owners, those with companies with 10 to 500 employees, are optimistic compared to 26 percent in 2012, states an announcement on the report, "The Principal Financial Well-Being Index: Business Owners." Just about two thirds increased their workforce and say financials have increased as well in the past year.

The research also reports 66 percent believe the bottom line will improve in the next 12 months, up from 55 percent last year, and 42 percent expect to hire more workers in the next 12 months, a third expect to boost wages and 32 percent plan to add benefits.

One notable trend is that of the 74 percent of those polled reporting surplus capital, 77 percent do not plan on spending those monies, citing the recessionary period several years back.

"We are seeing a clear rise in financial confidence from small business owners," said Amy Friedrich, senior vice president at the Principal Financial Group, in the release. "When business owners are adding jobs, increasing wages and adding benefits, we know they’re feeling good about their business, which bodes well for economic growth."