According to a survey of business owners by the National Federation of Independent Businesses, small and medium-sized businesses were slightly less optimistic in November than they were in October.
Respondents generally expressed pessimism about sales and overall business conditions. At the same time, however, the number of business owners who said they had spent money on capital equipment increased, and the number of business owners who said they had raised prices decreased.
In other words, it's kind of a mixed bag. So we called some small businesses and asked them how they really felt.
Earlier this year, Randy George purchased a new dough divider for his Vermont bakery and cafe, Red Hen Baking Company.
He also purchased another machine that lifted the fabric into compartments. “In fact, we invested in new equipment this year more than ever before,” he said.
George says it's helped that bread sales have been pretty strong. However, this year it has increased wages by 7.5%. So he's hopeful the new equipment will help streamline the business and keep Red Hen Baking Company in business long term.
“When you run a small business, you know how to survive. So I think this is all part of it,” George said.
Does that heavy investment mean he's feeling optimistic about the economy? George said he wasn't sure.
Heather Whaling, founder of Ohio-based PR firm Geben Communication, isn't sure how she feels either.
“My level of optimism or pessimism changes from day to day and maybe hour to hour,” she said.
Whaling said her business is much better than last year. At the time, she says, many of her clients were worried about the possibility of a recession, so she didn't want to spend too much on marketing.
But Whaling said business hasn't fully recovered.
“There's still some fear and concern, but businesses are probably not reacting as strongly to that fear,” she says. “You need to be more careful.”
Jennifer Nizgoda says there are several reasons to be hopeful about business in the new year.
She owns a company near San Diego called Al Fresko, which hosts catered events and operates specialty markets.
Niezgoda says sales are going well on the market.
“I think we're already seeing an uptick with things like the holiday season,” she says.
But Niezgoda says the events side of her business isn't doing so well. So she's rewinding her game and investing even more time and money into her brick-and-mortar store.
“Right now, that's our main focus because we think that's the core of the business. And from there, energy, events and everything else can grow. Yes, but we need that solid foundation,” she said.
That's something Niezgoda learned over the past year.
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