Small Businesses Optimistic as Economic Growth, Insurance Mitigate Concerns

Small Business Insurance

An uptick in economic forecasts has increased attention on America’s small businesses. A growing number of small business owners are expressing optimism, with many expecting to not only increase hiring but a fair number considering expanding and investing in growing the business in general.

In its March 2017 Report: Small Business Optimism Index, the National Federation of Independent Business (NFIB) indicated that small businesses are holding steady to their higher expectations reported in the NFIB’s previous Optimism Index. According to the Index, 47% of small business owners expect the economy to grow, while the Index also shows that capital spending reached its highest point since 2007.

Additionally, more small businesses are expecting to hire in the coming months than in previous years, although NFIB also explained that “more owners reported difficulty finding qualified workers to fill open positions.”

This also may indicate that one of the primary concerns for small businesses, as reported by the NFIB in its quadrennial NFIB Small Business Problems and Priorities Survey, may be declining thanks to an improving economy. As explained by Jim Blasingame in The Business Journals, “economic conditions” is the number four reason why small business owners have difficulty sleeping at night. The 2016 NFIB survey found the cost of health care, government regulations and federal business income tax as the top three reasons concerns for small business owners.

While not all of the issues and concerns small business have can be easily alleviated, some can be mitigated with insurance purchases. More businesses reported being concerned about cyber crimes in 2016, for example, than did in 2012. This is an issue that can be mitigated with the purchase of Cyber Liability Insurance. Meanwhile, the overall costs associated with doing business remained a top concern. Many of those issues are mitigated with the purchase a Business Owners Policy or Workers Compensation, which can decrease out-of-pocket expenses for unforeseen events.

It remains to be seen whether the next four years will fundamentally change how businesses perceive the costs associated with doing business. However, the NFIB will release its next Small Business Problems and Priorities Survey in 2020. It may well be a reflection of President Donald Trump’s economic initiatives which have been thus far heavily focused on business regulations.

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