March 4, 2015
By Bob Coleman
Editor, Main Street Wedensday
Are the results of a Union Bank study how small business owners view the economy.
From the report:
For the first time since 2012, the majority of small business owners believe the overall economy is heading in the right direction, with an all-time high of 90 percent believing their business is headed in the right direction. The rise in optimism reflects data showing that more entrepreneurs worked longer hours in 2014 due to increased business (61 percent, up 6 points from 2013).
Despite the rosier economic outlook, hints of restraint remain in capital and labor budgets for 2015, with most owners planning to maintain the same capital spending and staffing levels as 2014. In addition, a growing contingent (18 percent, up 7 points) plans to move their business out of state, primarily due to tax burdens. While most entrepreneurs plan to stay put, significantly more owners from California (20 percent) plan to relocate compared with owners from the Pacific Northwest (11 percent).
“The survey results reflect what we’re seeing among small business owners who are encouraged about the economy and gradually hired additional staff in 2014,” says Union Bank Managing Director Todd Hollander, head of Business Banking. “Taxes remain a challenge for small business owners, especially in California, but as the economy continues to strengthen, labor and capital budgets will likely grow.”
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