Optimism surges among small business owners: survey shows

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The NFIB Small Business Optimism Index, released monthly, jumped above the long-term average for the first time in nearly three years.

Small business owners are more optimistic than they have been in years, according to a new survey from the National Federation of Independent Business.The index rose by eight points in November to 101.7, comfortably above the 50-year average of 98 and the highest level since June 2021.“It's a really big deal,” NFIB Executive Director of Research Holly Wade said of the way the small business outlook “surged” last month.

The election results signal a major shift in economic policy, leading to a surge in optimism and certainty among small business owners, according to the small business advocacy group. Businesses that have been in a holding pattern over the last several years amid high inflation and interest rates now feel more certain about their ability to invest in their businesses, Wade said.“And so, we did see a pickup just this last month in hiring plans and in capital spending plans,” Wade said.Small business owners feel that they won't see a tax increase at the end of 2025, Wade said.

Inflation, labor quality and taxes remain the top problems. That’s the same as last year, but inflation barely took over the top spot from labor quality.

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