Small business owners’ confidence nearing pre-pandemic high

Confidence among small business owners is closing in on a pre-pandemic high, according to a new survey. 

The recent MetLife & U.S. Chamber of Commerce Small Business Index showed a post-pandemic high, reporting a 69.2 index score in its Quarter 3 findings. The score is up from 63.1 recorded in Quarter 2, demonstrating that small business owners are growing more optimistic about their future.

About one-third of small business said the economy is in good health, which is a 9-point bump from last quarter.

About 66 percent say that their business is good health, and more than 70 percent said they are comfortable with their cash flow. Both indicators are up since the previous quarter.

Small business owners are now looking forward to the future, as 71 percent say they expect revenues next year to increase.

This is the highest level recorded since the survey was established in 2017, as business owners now look to invest more and increase hiring. At least 40 percent of owners said that they plan to increase investments and their staff over the next year. 

Despite growing optimism, more than half of small business owners surveyed still say inflation is their biggest challenge; 56 percent also said keeping up with the salary expectations of employees is a challenge.

Fewer business owners, about 17 percent, say they are concerned about rising interest rates. The Federal Reserve raised interest rates to a 22-year high in July in an attempt to curtail inflation — the 11th rate hike since March 2022.

The survey was conducted among 750 small business owners and operators between July 20 and Aug. 8.