The National Small Business Association (NSBA) today released the 2013 Mid-Year Economic Report which shows an improved overall economic outlook for America’s small-business owners. When compared with five years ago, 40 percent of small-business owners said today’s economy is better off—the highest it’s been in five years.
Small-business owners didn’t express that same positive growth when it comes to their own business,” according to NSBA President and CEO Todd McCracken. “Past and projected growth in jobs and revenues remained stagnant while small businesses availability to garner financing dropped—two key indicators that go hand-in-hand.”
Today, just two-thirds of small businesses (65 percent) report they are able to obtain adequate financing, down from 73 percent six months ago. Despite the significant gains in economic outlook, small businesses continue to cite economic uncertainty as the number one challenge they face, followed by decline in customer spending and cost of health insurance.
Interestingly, despite positive growth in economic outlook, there was very little change in small-businesses revenue and profits over the last 12 months and similarly stagnant growth in projections for both revenue and profits in the coming 12 months. There also was relatively little change in growth strategies planned for small business in the next year
The survey also asked about key policy issues including health care reform and taxation—both of which remain major points of concern and confusion. Just one-in-five small-business owners say they have a clear understanding of how the new health care law will impact their firms. On the tax front, almost half (43 percent) say they have been the subject of an IRS audit or follow-up action in the last 10 years.
“A unique and very disappointing finding from our survey: the number one issue small business wants our elected officials to address isn’t even a policy imperative, it’s for them to end the partisan gridlock and work together,” said NSBA Chair David Ickert of Air Tractor, Inc. in Olney, Texas. “There are too many important issues facing our nation for this continued failure from policymakers.”