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Small Business Optimism Ticks Upward
SAN FRANCISCO -- Many of the nation's small business owners apparently aren't letting interest rate concerns and geopolitical uncertainty get them down. Their optimism actually is rising, according to the results from the latest Wells Fargo/Gallup Small Business Index, which rose from 93 to 100. The modest increase in the Index, which measures business confidence and overall market conditions, points to the continued strengthening of small business owner confidence. "The overall small business climate remains solid, but there are still some very real concerns among small business owners, including limited growth in sales, an uncertain economy, the rising costs of health care, and finding and retaining qualified employees," says Rebecca Macieira-Kaufmann, small business segment manager for Wells Fargo. "We're seeing small business owners invest in new technology and infrastructure to improve productivity and remain competitive."The Index tracks six key measures for both current conditions and future expectations as reported by small business owners: current financial situation, revenues, cash flow, capital spending, number of jobs, and credit availability."Our business to date has been very strong, but until I see a consistent and significant increase in product orders, I remain cautiously optimistic," says Stephanie Harkness, chief executive officer of Pacific Plastics & Engineering. Pacific Plastics, based in Soquel, Calif., primarily serves the medical devices and electronics industries.Most small business owners surveyed have taken steps in the past year to improve their productivity including buying new computers and making other capital investments, rather than limiting worker salaries or hours. Some business owners stated they are also likely to hire part-time employees to replace full-time workers who either left voluntarily or were laid off.Both the South and Midwest Index scores rose 16 points, with the South jumping to 119 (from 103), while the Midwest increased from 83 to 99. The West remained virtually the same, rising one point to 93; the East was the only region with a declining score, dropping from 90 to 84.Owners surveyed were asked to cite their company's most important problem. Lack of business/poor economy was cited by 23% of all respondents. This was followed by health insurance (13%), lack of qualified employees (12%) and financial resources/cash flow (12%).The Index rates small business owners' assessment of the current business climate and how they believe their businesses will perform the next 12 months. A score of zero reflects an equal number of small business owners who are optimistic and pessimistic about their company's situation.Wells Fargo & Co. is a diversified financial services company with $397 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,900 stores in North America and internationally.Visit Wells Fargo & Co.: www.wellsfargo.com"