Business Confidence rising – surveys prove

Despite ongoing concerns with inflation, entrepreneurs' revenue projections are finally starting to outweigh their anxiety about the broader economy, according to a recent survey.

For founders, an optimistic view of the months ahead is now outweighing the nagging problem of inflation, according to The MetLife and U.S. Chamber of Commerce Small Business Index.

The Index -- which measures small business owners' sentiments about their business operations and the broader environment, as well as their expectations for the future -- rose to 69.5 in Q2, up from 62.3 in the first quarter of this year. That's its highest level since 2020, according to the survey of 750 small business owners, which was released on Wednesday.

The survey's respondents, who were polled between April 19 and May 6, continue to cite inflation as their biggest concern, as they have for the past two years. But 73 percent said they expected their company's revenue to increase during the year ahead; that's the strongest such reading in seven years. And two-thirds of respondents rated the overall health of their business as somewhat or very good, while only 8 percent described the health of their business as poor.

Despite elevated prices and borrowing costs, entrepreneurs are also spending, with 46 percent of those surveyed planning to increase investment in their businesses over the next 12 months. That's up 10 points from the first quarter and just shy of a record high.

"Main Street employers are showing confidence and resiliency in the face of persistent inflation," said Tom Sullivan, the Chamber's VP of small business policy, in a statement released with the report. "Comfort with cash flow remains high and is a key reason why small business owners are bullish."