Small business optimism in the United States rose in November, according to the latest NFIB Small Business Optimism Index. The index increased by 0.8 points to reach 99.0, remaining above its long-term average of 98.
Michael Iosua, state director for the National Federation of Independent Business (NFIB) in Hawaii, commented on the results: “The small business economy is ending 2025 on a slightly upbeat note, which I think can be partly attributed to Main Street entrepreneurs knowing the 20% Small Business Tax Deduction will not expire at the end of this month and is, instead, now permanent. I also think the Hawaii Legislature can give this small momentum a push of its own by keeping 2026 completely free from any tax increases and additional employment mandates and other regulations. Our state has been through a lot, and a solid recovery begins by not burdening small business owners with anymore worries.”
Bill Dunkelberg, chief economist for NFIB, added: “Although optimism increased, small business owners are still frustrated by the lack of qualified workers. Despite this, more firms still plan to create new jobs in the near future.”
The November report showed that expectations for higher real sales contributed most to the increase in optimism among small businesses. However, uncertainty also grew; the Uncertainty Index rose three points from October to 91 due primarily to concerns about capital expenditure plans over the next several months.
In addition, there was a notable rise in businesses raising their average selling prices—13 percentage points higher than October—to reach a net 34%. This figure marks both the highest level since March 2023 and represents the largest monthly jump recorded by NFIB’s survey.
When asked about their overall business health, 11% of respondents rated it as excellent (a decrease of one point), while 53% said it was good (an increase of two points). Thirty percent described their situation as fair (down three points), and five percent reported poor conditions (up one point).
The NFIB’s Small Business Optimism Index is widely used as an indicator for America’s small business climate by federal policymakers and legislators across all states. It provides insights into trends affecting Main Street businesses that employ roughly half of all American workers and generate more new jobs than larger corporations.
NFIB has advocated for independent businesses nationwide since its founding in 1943 and remains focused exclusively on representing these enterprises.
For updates on Hawaii’s small business news visit www.nfib.com or follow NFIB Hawaii on X @NFIB_HI.
