Over half of small businesses saw an increase in revenues last year.
Business was good for mom and pop owners last year. So good they think their children will end up on easy street — or at least better than they’re doing now.
Fifty-two percent of small business owners say their revenues saw an increase last year and expect the growth to continue, says a poll from Wells Fargo. Their optimism is high enough to believe their children will reap the benefits over their lifetimes from mom and dad’s success.
Seventy-seven percent of small business owners say they expect their children to thrive further than they have, which is 10 percent higher than parents who don’t own their own businesses, says another poll — this one from New York Life.
“What this tells me is that being in the driver’s seat, as many small business owners are, is empowering and puts them in a brighter place when thinking about what lies ahead for their children,” says New York Life VP Brian Madgett.
Do they thank Trump?
It’s great business owners are looking forward to the distant future; but let’s focus on the next 12 months for now. Most think Trump’s administration is benefiting their businesses in some way.
Sixty-one percent say Trump’s administration is doing a good job improving the economy since he became president.
Mark Vitner, Wells Fargo’s managing director and senior economist, says the current economic climate is contributing to small business owners’ glee.
“The economy ended 2017 on a high note, and many small business owners believe that strong momentum will carry over into 2018,” Vitner says. “We are encouraged by the breadth of the improvement this past year, particularly in quantifiable areas like sales and overall finances. The more broad-based the gains, the more likely those gains will be longer lasting.”
Over half also say the administration is doing quality work with tax reform, specifically tax reform that impacts small business and creating jobs.
Hiring rates and tax savings
A large amount may support what Trump has done with job and taxes, but can they hire more workers themselves?
Over half (51 percent) say they want to hire new employees, says a survey from Manta, a small business education site. They say that, but may not be able to do it. The survey points out that most small businesses saw positive increases last year, but struggled to hire new staffers.
Almost three quarters (74 percent) felt 2017 was a good year for business, and half (51 percent) saw revenue increased from 2016. However, only 36 percent were able to hire new team members. John Swanciger, Manta’s CEO feels most small businesses have learned to get by with less.
“It used to be that if your business was doing well, you were hiring,” Swanciger wrote in a blog post. “As indicators of Main Street’s health, optimism and job growth went hand-in-hand. That’s just not the case anymore. The definition of a ‘good year’ has changed. Now, growing sales without growing payroll looks pretty good to most business owners.”
As far as tax reform, 80 percent of small business owners say they’re going to reinvest their tax savings into their business, while 20 percent want to use it for personal reasons, Manta’s poll says.
“Small business owners feel better about the economy and the future of their business,” says Andy Row, head of customer segments at Wells Fargo. “These trends tell us that small business owners are more positive about the economy, and that optimism is translating into investment in the future of their businesses right now.”
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Article last modified on March 2, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Small Business Owners With Caviar Dreams — For Their Kids - AMP.