Survey: Small business revenue, investments and profits looking sunny

(This post originally appeared on The Washington Post)

I believe that the business of America is small business. And small business is doing well.

A survey released this week by insurance company Hiscox underscores this fact. Seventy-two percent of the 1,000 small and medium-sized companies in the United States that participated said their top-line revenue were up during the past year over prior years. Thirty-one percent reported double-digit profit increases.

Most importantly, a quarter of firms have increased investment in their companies this year and the same number plan to invest more in the year ahead. This is a marked increase from the same period last year. U.S. companies are adding jobs at a significantly higher rate than last year too with a third of those surveyed planning to hire 10 or more people in the next year.

Is it the Trump effect? It appears partly so. “Small business attitudes toward government policies have transformed,” the report says. “A year ago, a net  1 percent of U.S. respondents said ‘no’ when asked whether their government’s policies were supportive of entrepreneurs (35 percent saying ‘no’ compared with 34 percent saying ‘yes’). This year, there is a net balance of 18 percent who consider government policies are supportive (46 percent versus 28 percent).”  That’s a “huuuuge” difference, yes? A loosening of regulations and the hope for lower taxes is likely behind this.

More interestingly is the rise of the millennial entrepreneur. According to the survey, the business owners from this generation are largely experiencing better success and feeling more optimistic about their business prospects than ever before.

Of course, there are always challenges. The survey found a majority of business owners were concerned that their businesses had too much of a concentration on just a few core customers. Many have experienced losses from cyberattacks and others are bracing to be affected. New technologies will require more investment and put pressure on hiring. Rising prices and collection issues continue to nag — but then again, won’t they always?

The takeaway is that things are going well right now for small businesses in the United States. So well that we’re not only making more money but working less hours too — the survey found that our average workweek has fallen from 40 hours to just under 38. I’m pretty sure we’ve got the millennial generation to thank for that too.