NFIB: Entrepreneur confidence up slightly in February

Some small-business owners may soon be seeking more investment loans to grow their companies, as new data indicates entrepreneurs are increasingly confident. The National Federation of Independent Business (NFIB) Small Business Optimism Index jumped 1.9 points in February to 90.8. 

The index surveys business owners on 10 different components, eight of which improved in February. Report data shows the number of entrepreneurs planning on increasing capital spending and investing in inventory was strong, but company leaders are still hesitant about the current economic situation. 

"While the Fortune 500 are enjoying record high earnings, Main Street earnings remain depressed," said Bill Dunkelberg, NFIB chief economist. "Far more firms report sales down quarter-over-quarter than up."

Many report some struggles, even with optimism up 
While the index is showing improvement, small-business owners are still facing difficulties as they attempt to expand their operations. The data showed 18 percent of entrepreneurs cited low sales as their main company problem, with 33 percent claiming their sales had declined over the past three months. Limited consumer spending and uncertain markets aren't doing much to help boost business, and political gridlock in Washington could be doing little more than adding to the pressure entrepreneurs face.

"Washington is manufacturing one crisis after another - the debt ceiling, the fiscal cliff and the sequester," said Dunkelberg. "Spreading fear and instability are certainly not a strategy to encourage investment and entrepreneurship."

Demand for business financing low in February, but could rise 
Even with confidence rising, the demand for loans was still rather limited in February, according to report data. Twenty-nine percent of respondents felt all their credit needs had been met, and only 7 percent claimed the opposite. While 7 percent of business owners claim they feel loans are more difficult to get in the current economic climate, twenty-nine percent of entrepreneurs claim they are taking out loans on a regular basis. 

With more people believing project finance will be harder to obtain in the coming months, those in need of business loans may want to turn to smaller banking firms that give loans to startups and mid-sized operations more frequently. Not only can this be a new way for an entrepreneur to get the growth capital he or she needs to expand a business, it also gives company leaders a chance to experience more personalized cash management options and unique banking solutions. 

Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.

Getting Started

Find your ideal banker:

Select any filter and click on Apply to see results

Featured Insights

By standard economic metrics, the country fully recovered from the recession in late 2013 when real GDP per capita...

Small-business owners are currently borrowing in record numbers. According to the most recent Thomson Reuters/PayNet...

Business leaders struggling to decide between raising debt vs. equity as the best path to growing their business...

From training staff to managing the company to working the books, small-business owners are constantly spinning...

There's good news in the big world of small businesses. According to the Kauffman Foundation's Index of...

Finding startup financing for a new enterprise or funding for a business expansion can be a challenging obstacle to...

Small business banking should be seeing a boon in the coming months provided trends continue if a recent...

Craft breweries are getting some much-needed help in making the shift to sustainable practices. The Green Brewery...

Small-business owners' confidence levels ticked up slightly last month. According to the National...

Americans' financial outlook is trending upward as consumer confidence levels...

Recent News

07/02/15
If you happen to be growing tired of ‘Grease’ lyrical references, imagine how tired...
06/30/15
PHOENIX - Western Alliance Bancorporation (NYSE: WAL) today completed its merger...
06/26/15
In a fairly uneventful week in terms of economic data, the Greek situation was at...
05/21/15
Michael Hengl and Ryan Banta to lead new teams at Bridge Bank San Jose, CA – May 19...
05/19/15
San Jose, CA – May 19, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
05/08/15
The US dollar has given up roughly 3.5% against the Euro this week and, with the...
05/07/15
San Jose, CA – May 7, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose subsidiary...
05/01/15
More disappointing economic data out of the U.S. and the UK along with substantial...
04/24/15
With a great deal of volatility and choppy trading, the week’s activity has revealed...
04/20/15
Conference Call and Webcast Scheduled for Monday, April 20, 2015 at5:00 p.m. Eastern...

Twitter

Featured Insights

Featured Insight

Business leaders struggling to decide between raising debt vs. equity as the best path to growing their business...

Featured Insight

Clarity can go a long way toward convincing an investor to buy a stake in your business. If you believe your company...

Featured Insight

Recurring revenue lending is an alternative form of senior debt financing that is particularly useful to growing...

Recent News

By standard economic metrics, the country fully recovered from the recession in late 2013 when real GDP per capita...

Small-business owners are currently borrowing in record numbers. According to the most recent Thomson Reuters/PayNet...

From training staff to managing the company to working the books, small-business owners are constantly spinning...

Twitter