The latest survey of small businesses is out from the NFIB, and it continues to show a bullish and optimistic attitude. Not surprising given the fact that a whopping 77% reported higher profits. So what are they spending all of their new found gains on? Growth!
Small businesses are hiring more employees. One in five small businesses expanded their employment in October. In fact, business is so good for small businesses that they are beginning to experience difficulty in hiring. Eight out of ten (79%) small business owners reported that they found “few or no qualified workers for the positions they were trying to fill.” And one in ten now say that finding qualified workers is their number one business problem. The only two industries not reporting strong employment were agriculture and retail.
Small business owners reported that they are continuing to make capital expenditures for their businesses in October, including equipment (46%), vehicles (24%), and facilities (13%). Overall, they also increased their inventories in October.
The entrepreneurial economy just keeps gaining steam, in spite of hurricanes and higher gas prices. It is also moving ahead in spite of the apparent wishes of many politicians and journalists who seem to be hoping for a downturn. For example, the Boston Globe had a headline yesterday at their website “State economy slogs on despite rising energy prices”. Slogging?? The story is full of hand-wringing about higher energy prices and how it will surely bring an end to the economic expansion. They seem to be oblivious to the fact that much of the energy price increase was a temporary blip that has already significantly subsided.
The politicians in Washington continue to do everything they can to dampen the economy, including shelving plans to expand our energy base in the US.
But, the entrepreneurial economic expansion ignores all of this and just keeps rolling along. Entrepreneurs are truly remarkable people.
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