Daily News: February 7, 2012

Wells Fargo: Small Business Owners Expect Increased Revenues


America’s small business owners are the most optimistic since July 2008, according to the Wells Fargo/Gallup Small Business Index survey for January 9-13, 2012. The Index now stands at +15 for January, compared to -3 in October and following two previous readings of zero (neither optimistic nor pessimistic).

The Index’s future expectations component (forward looking 12 months) rose to +21 in January, an increase of 13 points from the survey’s last reading, which occurred in October 2011. Driving the increase was a more bullish sentiment across several categories tracked by the survey:

  • Revenues — 49% expect revenues to increase a lot or a little, up from 37% in Q4/11

  • Overall financial situation — 63% expect their company’s financial situation to be very or somewhat good over the next 12 months, up from 55% in Q4/11

  • Hiring — 22% expect the number of jobs at their company to increase a lot or a little, up from 15% in Q4/11; 8% expect the number of jobs at their company to decrease a lot or a little, down from 13% in Q4/11

  • Cash flow — 53% expect their cash flow to be very or somewhat good, up from 48% in Q4/11

  • Credit access — 27% expect credit to be very or somewhat easy to obtain, up from 22% in Q4/11; 38% expect credit to be very or somewhat difficult to obtain, down from 43% in Q4/11

    “January’s increase in optimism signals that small business owners are seeing a brighter future,” said Doug Case, Wells Fargo’s small business segment manager. “While this economy still presents challenges for many business owners, we are encouraged by expectations for improved revenues, financial situation and cash flow, which have the potential to drive job growth.”

    For complete survey results, click here.