With an unemployment rate of 3.9%, the American economy is in the middle of a huge boom – one of the biggest we’ve had in a long time.
But macroeconomic indicators don’t always show the whole picture. What about the real lifeblood of the economy? What about small business?
In a study released last month by Wells Fargo, a number of promising statistics were revealed about the state of small businesses in America. For starters, Small Business Optimism jumped 12 points in the third quarter, skyrocketing Small Business Optimism to its highest peak in the 45-year history of the survey.
Another positive indicator for small business comes is assessment of current finances. 78% of small business owners say their financial situation is either very good (34%) or somewhat good (44%). Only 9% say their finances are either somewhat poor (7%) or very poor (2%). Additionally, 84% of small business owners say they expect a better financial situation in the future.
With both finances and optimism soaring, it’s a great time to be a small business owner. And small businesses are not only doing well on their own – they’re also doing wonders for the economy.
Small and midsize companies added a total of 132,000 employees to the economy in August. That’s out of a total of 163,000 jobs. Large businesses only added 31,000 jobs to the economy last month, getting completely dusted by the smaller guys.
Another thing that’s important to note is that these jobs were added to an economy that is currently at an extremely low unemployment rate. There are labor shortages in a number of industries, but smaller companies are making serious gains. In fact, 35% of small businesses plan to add staff during the coming year.
Small business is in a great place right now and it only looks like it will get better. Who knows how long this boom will last? As long as it does, savvy small business owners will be there to ride the wave of success.