More small-business owners in the U.S. say their company”™s current financial situation is good, yet their outlook for the next year also factors difficulties with customer numbers, regulations and the health of individual businesses, according to the latest Wells Fargo/Gallup Small Business Index. The bank maintains a robust branch and ATM presence throughout Fairfield and Westchester counties.
The survey showed cash flow, revenue and access to credit getting better for small businesses “as expectations for year ahead remain flat.”
In a quarterly small-business survey, conducted July 7-11, the overall Small Business Index score increased to positive 49 in July, up two points from positive 47 in April.
The score, which measures small business optimism, has increased six of the last seven quarters. Small business optimism is now at its highest point in more than six years, though it remains well below prerecession levels, according to the survey.
“The present situation” ”“ how business owners rate current conditions for their businesses ”“ is the main contributor to increased optimism in the latest survey. The present situation score is now at a positive 18, up four points since the April survey and 14 points from the same period a year ago.
Small-business owners reported they felt better about their current business financial situation, with 62 percent rating it “very or somewhat good,” up from 57 percent in the previous quarter.
More business owners reported their company”™s revenues had increased, with 43 percent indicating revenues up in the past 12 months, compared with 36 percent in April.
Cash flow over the past 12 months also was at a six-year high, according to the survey; 55 percent of business owners reported their cash flow was “very or somewhat good” over the past year, up from 50 percent in the previous quarter.
And 32 percent of small-business owners said it was “very or somewhat easy” to obtain credit in the past 12 months.
The percent of business owners who said they expect to increase capital spending in the year ahead is the same as those who plan to decrease (25 percent).
Business owners reported their biggest challenge is attracting customers and finding business (13 percent), followed by government regulations (11 percent), financial stability of their business (11 percent) and the economy (11 percent).
