Confidence in Small Business Can Lead to Bad News

Many small business owners are not so sure how to feel about the economy. While the economy is in recovery mode and things are starting to look up when it comes to certain things, there are still a lot of small business owners that are simply not feeling as optimistic as they felt previously. In fact, within the past month, the optimism from small business owners managed to decline. This information as reported by the National Federation of Independent Business. As of right now, small business owners are not planning to hire new employees because they are not confident and are unsure of where the economy will go from here.

When small businesses add available positions and hire new employees, they are helping to lower the unemployment rate. In fact, it is the smaller businesses that make up about 65 percent of the new available jobs. Many of those available jobs come from small businesses that seem to grow quite fast. However, recent information from a report that came from the Department of Labor actually shows that the United States only added about 120,000 jobs during the month of March. This was lower than the expected amount which is troubling. And still, the unemployment has managed to decline from 9.1 percent from the previous summer to its current 8.2 percent.

There is some data that seems to show good news. For the month of March, many smaller employers increased their payrolls, which is something they had not done nearly as much within the past two years. It is also believed that smaller employers are still doing considerably well, especially considering the slow growth with China and the European debt crisis.

However, reports show that when small business owners were surveyed, the confidence was simply not there. In fact, many companies still have low-confidence, much the same as it was during the recession, which lasted for about two years but left a huge damper on the United States economy. The problem is that many small business owners are simply doubtful. They do not want to become overly confident at time like this, especially when the economy and its recovery are still questionable, and they do not believe that the recovery of the economy is very strong. They want consistency when it comes to unemployment patterns but they have some serious fears because the consistency is simply not there right now. It will definitely take a while before the confidence of these small business owners returns.