The future for small business owners is looking up!  For the first time since 2007, the majority of small businesses are optimistic about the near-term future.  According to the American Express OPEN® Small Business Monitor, a semi-annual survey of business owners, more than half (55%) of entrepreneurs have an optimistic outlook on near-term business prospects, up from 45% in March of this year.  Detailed research findings are available here.

But Not Many New Hires

Although small business optimism is on the upswing after hitting its all-time low a year ago, the American Express OPEN Small Business Monitor shows that business are not shifting to hiring mode. This fall, just under one quarter have plans to hire (23% vs. 28% this spring), which is the lowest reading in the history of the Monitor (falling below the fall 2002 recession level of 26%), and plans for capital investments equal the record setting low from Spring 2009 (42%).

Three Guidelines for Entrepreneurs

The finding show that owners are focusing on the basics, when it comes to managing their companies through these tough times.  Here are their three guidelines:
Concentrating on current customers. Forty-one percent of small business owners say their top priority over the next six months is maintaining current sources of revenue, while only one in four (26%) say they are focused on growing their business, which is the lowest number for growth in Monitor history.

• Avoiding risk. Half (49%) say they are not willing to take on financial risk to grow their business, an all-time high for the Monitor.

• Keeping employees happy. Here’s some good news; it appears deteriorating employee morale has plateaued. Only twelve percent say employee morale has worsened over the last six months (down from 25% for the preceding six-month period.) Three-quarters say morale has stayed the same, and nine percent say it has improved. In addition, approximately one in three (28%) business owners see offering financial incentives such as bonuses and paid time off as a way to increase employee morale, and twenty-three percent see more regular communication about the business as the key to improving morale.

It’s clear that we’re not out of the woods yet, but this and other data indicate entrepreneurs are digging in, being resourceful and putting their good attitudes to work.  What about you?