Page 8 - midJersey Business - April 2015

News Desk

WHAT’S HAPPENING IN MID-JERSEY BUSINESS

SURVEY SAYS

Small Business Optimism

Highest in 7 Years
OWNERS SEE IMPROVEMENT

IN REVENUE, CASH FLOW,
S
AND HIRING

mall business owners report they’re the most

optimistic in seven years, with stronger revenue,
improved cash flow, and increased hiring contribut-

ing to the improvement, according to the latest Wells
Fargo/Gallup Small Business Index.

In the quarterly small business survey, the overall
Index score, which measures small business owner optimism,

jumped to positive 71 (+71), significantly up from +58 in Novem-
ber 2014 and up from +45 in January 2014.

While the score is still below pre-recession levels, it’s the high-
est it has been since January 2008 when the Index score was +83.

Several factors contributed to the rise in optimism this quarter,
including:

Improved revenue:
In the January survey, 49 percent of small
business owners reported their revenues increased over the

past 12 months, up from 37 percent a year ago. This represents
the highest reading on this measure since 2007, when 52 per-
49%
cent of small business owners reported increased revenues.
Better cash low: Business owners’ cash flow improved over

the past 12 months, with 54 percent rating their company cash
flow as very good or somewhat good, compared to 52 percent in

the first quarter of 2014.
Hiring is up: More business owners increased the number of of small business

jobs at their company over the past 12 months (19 percent). owners reported
Just 11 percent reported a decrease in jobs, compared to 16 their revenues

percent in last quarter’s survey.
increased over the
Access to credit: The ability to obtain credit also improved past 12 months,

with 34 percent reporting that it was somewhat or very easy to up from 37 percent
obtain credit over the past 12 months, up from 30 percent in a year ago

November 2014 and 28 percent a year ago.

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