Small Business Outlook Stronger Than Ever

A Message From Chamber CEO Nancy Lindholm 

​The U.S. Chamber of Commerce recently released its quarterly Small Business Index, which reached a record high of 71.3, up 0.6 points from the third quarter of 2019. It's the highest score since the survey launched in 2017.

The high score for 2019 Q4 is the result of two elements: small businesses' strong outlook on their local economy and optimism about their own business health.

Key findings of the Q4 results are:

• 69% of small businesses report good health, up slightly from last quarter (66%). This is the first time the measure has grown over four consecutive quarters.
• An unprecedented 59% say their local economic outlook is good. This is the most optimistic businesses have felt toward their local economy since the survey's inception.
• 57% say the U.S. economy is in good health, similar to last quarter and continuing an overall positive trend since Q1.

Other highlights of 2019 Q4 findings are:

• 83% of small businesses feel comfortable with their cash flow, the highest level of optimism since the survey began.
• 20% of small businesses report increasing their staff size this past year. This also is the highest percentage since the survey's inception.
• Minority-owned small businesses are more likely than non-minority-owned small businesses to plan for an increase in investments. Minority-owned small businesses also are more likely than non-minority-owned ones to have plans to grow staff.
• Millennial small business owners are the most likely (51%) to have plans to grow their staff compared to other generations. In comparison, just 25% of Baby Boomer or older small business owners have plans to increase staff.

On the downside, manufacturers are growing pessimistic. Small manufacturers have become more pessimistic about the national economy over the last two quarters with an 11% decline (from 69% in Q2 to 58% in Q4).

To read the entire Small Business Index, go to www.uschamber.com/sbindex

Author

Nancy Lindholm is President and CEO of the Oxnard Chamber of Commerce, a position she has held since 2004. Prior to the Oxnard Chamber, Ms. Lindholm was Executive Director of the Regional Legislative Alliance of Ventura & Santa Barbara Counties, and a small business owner. She also served on the Board of Directors for the Ventura and Camarillo chambers of commerce.