More than one in five small-business owners (22%) expect to add jobs over the next 12 months, while 8% expect to eliminate jobs, according to the new Wells Fargo/Gallup Small Business Index poll.
This is the most optimistic owners have been in four years, Gallup says.
Small-business owners tend to be optimistic. Otherwise, how could they stand the uncertainty of the business world and the economy? Their role in the economy is significant: half the gross domestic product, two-thirds of the net new jobs over the past 15 years.
How did past expectations compare with what small businesses actually did about jobs?
At this time year ago, 23% said they expected to add new jobs and 11% expected to eliminate them over the next 12 months. In the past 12 months, 22% CUT jobs and 13% added them, the reverse of what owners expected they would do. Other years show similar over-optimism.
Photo by Juhan Sonin