This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Wells Fargo Small Business Index: Business Owners More Optimistic To Start 2013

Stocks in this article: WFC

After the Wells Fargo/Gallup Small Business Index dropped to the most pessimistic level in two years in November, business owners are more optimistic as 2013 begins. The latest Index improved 20 points to positive 9 (+9) in January 2013, up from negative 11 (-11) in November 2012, indicating an improvement in optimism since the November elections. Key drivers of this improvement in the survey, conducted Jan. 7-11, 2013, include increased business owner optimism about revenues, capital spending, and jobs over the past 12 months and more optimism about their overall financial situation, revenues, cash flow, and jobs over the next 12 months. A year ago, in January 2012, the Index was at positive 15 (+15).

While optimism improved from the fourth quarter, the survey paints a mixed picture with respect to jobs and hiring. More business owners (71 percent) expect the number of jobs at their companies to stay the same over the next 12 months, and business owners planning to add jobs during the same period remained unchanged at 17 percent. Among those who hired new employees the past 12 months, 35 percent of owners are hiring fewer employees than they need, up from 29 percent in January 2012, but below the 42 percent of November 2010.

“At a time when news headlines report mixed economic news and uncertainty in Washington, our survey shows the volatility of business owner sentiment today,” said Doug Case, Small Business Segment manager for Wells Fargo. “Business owners are feeling a bit more positive at the beginning of the year, but they also express concern about the operating environment that could impact future business decisions, such as hiring new employees.”

Small Business Hiring

This quarter, the Index survey included additional questions on hiring and jobs. When small business owners who are not hiring were asked for the reason, the top responses were:

  • Don’t need additional employees at this time (81 percent)
  • Worried about the revenues and sales to justify new employees (74 percent)
  • Concerned about the status of the U.S. economy (66 percent)
  • Worried about the potential cost of health care (61 percent)

The number of small business owners saying they are not hiring for fear they may no longer be in business in 12 months increased to 30 percent in January up from 24 percent from one year ago.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs