The National Federation of Independent Business (NFIB) announced on Jan. 14 that its latest Small Business Optimism Index showed a significant increase in confidence among small business owners, with the net percent of owners expecting the economy to improve rising by 16 points from November to a net 52%, the highest level since late 1983.
This shift is notable as it marks a potential end to what NFIB described as a five-year period without consistently positive news for small businesses. The index is widely regarded as an important measure of the health and outlook of America’s small business sector, which employs about half of all workers and generates more new jobs than large corporations.
Michael Iosua, state director for NFIB in Hawaii, said, “Good news for small business owners has been a long time coming, consistently good news even longer. Right now, Hawaii’s lawmakers have a rare opportunity give the vastly improved economic outlook some additional power by keeping the heavy hand of regulations off of Hawaii’s businesses.”
Other findings from the report include an increase in the percentage of owners who believe it is a good time to expand their business, up six points to 20%, which is the highest reading since February 2020. The net percent of owners expecting higher real sales volumes also rose eight points to a net 22%, reaching its highest level since January 2020. Additionally, a net six percent of owners plan inventory investment in coming months, up five points from November and marking the highest reading since December 2021.
Bill Dunkelberg, NFIB Chief Economist, said, “Optimism on Main Street continues to grow with the improved economic outlook following the election. Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”
The NFIB’s Small Business Optimism Index is used by policymakers including members of Congress and Federal Reserve officials as an indicator for Main Street economic trends. The typical NFIB member employs between one and nine people with gross sales around $500,000 annually.
Looking ahead, NFIB encourages those interested to follow updates on Hawaii’s small-business environment through its website or social media channels.
