There is a drop in the confidence levels of the small businesses in the economy, as per a survey by the National Federation of Independent Business.
During May the reading of the National Federation of Independent Businesses Optimism Index was 92.2 in May which was highest since September 2008 and then recently it decreased to 89, as per a report by Washington based group.
According to the US Small Business Administration, 99 percent of all US employers are represented by Small businesses. They have created 64 percent of jobs during the past 15 years. Around 250 people are employed in small businesses. A small business is an independent enterprise.
There should be increase in hiring process by smaller firms to see that the economic recovery which had begun last year should stay for a longer time.
As per the survey:
- Around 1 percent of small business respondents are planning to hire over the next 3 months which is unchanged from May. It is the second positive reading in the past one and half years.
- About 9 percent of small business firms said that they had job openings which were hard to be filled. This is also unchanged since that last month.
- There is a decrease of 1 point to a net 19 percent in plans for capital investment in the forthcoming months.