Infographic: Q1 2017 Small Business Index
Insights on small business owners in Q1 2017.
Small business owner optimism has surged to pre-recession levels in the first quarter of 2017, with an overall index score of 100 - up 20 points from 80 in Q4 2016.
Small business owners reported improvements over the past 12 months on several key measures
71 percent said their current financial situation is very or somewhat good, up from 66 percent in Q4. 45 percent said their business's revenue had increased a little or a lot, up from 37 percent in Q4. 64 percent said that their cash flow was very or somewhat good, up from 55 percent in Q4. 40 percent said that credit was somewhat or easy to obtain, up from 34 percent in Q4.
Small business owners were asked about their retirement plans in February. More than half of small business owners said they'd continue to work if money were no object. In the long run, 32 percent of small business owners said they expect to never retire until able to work, 41 percent said they would cut back on work, but maintain some involvement in the business, 19 percent would sell or transition the business in order to do something else, 6 percent said they would retire and stop working, and 2 percent were unsure.
70 percent of small business owners lack a formal, written transition plan, while 59 percent plan to create one before they retire.
While most small business owners said they expect to continue, many feel more confident about their financial future and ability to retire. 82 percent are currently saving or investing money toward their retirement, and 76 percent think they'll have enough money to live comfortably in retirement.
The Wells Fargo/Gallup Small Business Index is calculated from a quarterly survey of 602 small business owners and measures current and future perceptions of their business financial situation. More information can be found at https://wellsfargoworks.com/small-business-optimism-surges-to-pre-recession-levels. © 2017 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. March 13, 2017