In the first set of data collected after the election, small business owners are bullish about growth and profitability.
Our weekly survey and analysis of the latest data from leading organizations highlights improved confidence and strong growth expectations for 2025.
Our survey about small businesses also reveals optimism about the economy coupled with inflation worries, ongoing hiring pressures and an upward trend in capital spending.
Meanwhile, the Q3 MetLife & U.S. Chamber of Commerce Small Business Index is out with insights on the economy. And our Impact of Technology on U.S. Small Business report shows how AI is helping small businesses.
This Week's Highlights
Small business confidence continues to rise, with 63% of owners believing the economy will improve over the next year, a notable increase of 27 points from October.
92% of small business owners anticipate moderate to significant growth in the next six months, with optimism especially pronounced among immigrant-owned and veteran-owned businesses.
New Small Business Data
WSJ / Vistage Small Business CEO Confidence Index (November 25, 2024)
Summary: Small business confidence improves after the election with skyrocketing anticipation of higher revenues and profitability.
28% of small business owners say the economy has improved (5 points higher than October) and 28% say the economy has gotten worse (3 points better than October).
63% of small business owners believe the economy will improve in the next 12 months (27 points better than October) and 13% believe the economy will worsen (1 point better than October).
64% of small businesses plan on increasing employees next year (12 points higher than October) and 3% plan on shrinking their workforce (4 points lower than October).
45% of small businesses expect to increase fixed investments in the next year (9 points higher than October).
79% of small businesses expect increased revenues in the next 12 months (13 points higher than October) and *69% believe profitability will improve (16 points higher than October).
51% of small business owners rank “tax policies” as the most likely to impact their business within a list of anticipated policy priorities of the new Administration.
92% of small business owners expect moderate to significant growth in the next 6 months (up ½ a point since last quarter).
97% of immigrant-owned small businesses are forecasting growth (up 2 points).
Almost 97% of veteran-owned small businesses are forecasting growth (up 12 points).
58% of small businesses that are family-owned plan on keeping the business in the family.
35% of small business owners are positive about the nation’s economic health (decreased 1 point since last quarter) and 48% are negative about the U.S. economy (1 point more negative).
38% of small business owners are positive about the health of their local economy (decreased 5 points since last quarter) and 34% are negative about their local economy (7 points more negative than last quarter).
56% of small business owners rank inflation as their top concern (1 point higher than last quarter and the 11th consecutive quarter where inflation tops the list).
66% of small businesses are confident in the health of their own business (no change from last quarter) and 68% are comfortable with their current cash flow (5 point decrease from last quarter).
22% of small businesses increased staff over the past year (no change from than last quarter and tied with the highest level reached 2-years ago) and 44% of small businesses anticipate increasing staff in the next 12-months (3 points higher than last quarter).
71% of small business owners are more interested in the upcoming election than 4-years ago.
84% of small business owners feel that partisan gridlock is a serious problem in Washington and 75% believe that political leaders should compromise to get things done (7 points higher than 4-years ago).
88% of small business owners said that it is very important the next Congress does not raise taxes on businesses.
Article written by Thomas M Sullivan for the U.S. Chamber of Commerce. For the full article, please visit the U.S. Chamber of Commerce.
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