Another indication of a strengthening economy
The smallest of small businesses are feeling good about 2015 which is good news for Sam’s Club as it appeals to the key member segment.
Microbusiness owners, defined as companies with five or fewer employees, are feeling better about their ability to maintain or grow their personal income in 2015, according to the Sam’s Club/Gallup Microbusiness Tracker survey of more than 1,000 businesses.
Based on a year of feedback from America’s Main Street microbusinesses, Sam's Club and Gallup discovered that America’s entrepreneurs’ expectations for growth, hiring and strengthened business conditions have improved dramatically since December 2013. Microbusiness owners also report fewer concerns about their cash flow or bottom lines at the end of 2014 than they did a year ago. Owners concern for cash reserves as a “major issue” for their business dropped 6 points from December 2013 to December 2014 (58% to 52%, while the number of microbusinesses that had had to dip into personal savings to make ends dropped 9 points (44% to 36%).
"With a year of data on American microbusinesses’ top emotional and economic concerns, I hope small business advocates will join Sam’s Club to respond to entrepreneurs needs and help them prosper with data-driven solutions, services, grants and programs,” said Rosalind Brewer, president and CEO of Sam’s Club. “The optimism among Main Street business owners heading into 2015 is a significant economic indication.”
Other annual trends signal microbusiness optimism, including increased confidence in the future of their companies (66.6% up to 72.5%) and decreased concern for finding more customers” (51.4% down to 46.5%). Microbusinesses also had decreased concern about access to capital (35.8% down to 30.8%).
“The improving outlook among microbusiness owners in December 2014 mirrors rising spirits and stronger economic signals in other economic metrics Gallup regularly tracks,” said Ben Ryan, entrepreneurial specialist at Gallup. “Economic confidence is up, unemployment is down, and consumer spending is strong. The rising tide appears to be lifting these smallest of boats as well.”
The Sam’s Club/Gallup Microbusiness Tracker results reflect 1,007 phone interviews conducted November 24 to December 2014 with companies of five or fewer workers defined as microbusinesses. The Tracker has followed companies of five or fewer workers on a quarterly basis from December 2013 to December 2014.