Small business owners between 18 and 33 are the most confident about the economy, according to a recent study. They expect revenues to go up in the coming months and they are ready to take on more employees.
Capital One’s Spark Business Barometer comes out quarterly and looks at the issues and trends affecting small businesses, as well as the perceptions of small business owners on the economic and financial climate.
Millennial’s pull away from the pack
Millennial owners are leading the way when it comes to optimism, with about two-thirds saying they expect to increase sales over the next six months and 39% indicating that they are better off this year than last. When it comes to hiring, millennial’s are outdoing their older counterparts too, with 45% saying they will be hiring more in the near future compared with 30% of the overall respondents.
The younger set are also more confident about the direction the national economy is taking, with 79% giving it a thumbs up, while just 49% of all small business owners overall share their optimism. Three-quarters of millennials indicate that the overall conditions for business are good, or even excellent, while only 51% of all respondents felt the same way.
Millennial’s are also outpacing their counterparts when it comes to supporting minimum wage increases. They are more likely to see it as a way to improve their employees’ financial position, rather than being a burden to the company. When compared to other generations, they are less likely to take a hardline stance, like laying off employees or putting a hold on hiring, with minimum wage increases.
All generations are looking up
It’s all about sales, and according to 41% of respondents regardless of their generation, sales have gone up during the last six month. Just over a third of small business owners have seen no change. When compared the results of past studies, sales appear to be trending upward, with businesses reporting less stagnation and more revenue.
In 2009, 34% said their financial situation was worse than the year before. Since then confidence has grown steadily. This year 45% said they believe that their bottom line will improve over the next six months, with an additional 45% saying it will hold steady.
The survey asked whether or not respondents’ financial picture had improved from last year, and 39% indicated that they were doing better this year, up 5% from last quarter.
The Capital One’s Spark Business Barometer interviewed 400 small businesses in the U.S. earning less than 10 million dollars annually. The study was conducted over the telephone from June 24 to July 2, 2014.
