The NFIB Small Business Optimism Index rose to 99.8 in April, an increase of 1.6 points from March. The Optimism Index has increased 4.8 points over the past three months since January but a record 44% of owners reported job openings that could not be filled.

“Small business owners are seeing a growth in sales but are stunted by not having enough workers. Finding qualified employees remains the biggest challenge for small businesses and is slowing economic growth. Owners are raising compensation, offering bonuses and benefits to attract the right employees.”

NFIB Chief Economist Bill Dunkelberg.

Other key findings:

• Eight of the 10 Index components improved and two declined.
• The NFIB Uncertainty Index decreased one point to 80.
• Earnings trends over the past three months improved eight points to a net negative 7%.
• Owners have plans to invest in their businesses as the percentage of those planning to make capital expenditures in the next three to six months increased seven points to 27%.
• The percent of owners expecting better business conditions over the next six months fell seven points to a net negative 15%, surprisingly glum.

47% | Percent reported capital outlays in the last six months, down two points from March but 10 points above last year’s low. Of those making expenditures, 42% reported spending on new equipment, 25% acquired new vehicles, and 15% improved or expanded facilities.

6% | Prtcentage of those surveyed who acquired new buildings or land for expansion and 12% spent money for new fixtures and furniture. Twenty-seven percent plan capital outlays in the next few months. Hopefully supportive of improved productivity.

3% | Percentage of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up nine points from March. The net percent of owners expecting higher real sales volumes improved one point to a net 1%.

7% | Percentage of owners who view current inventory stocks as “too low” in April, up to four points. A net 5% of owners plan inventory investment in the coming months, up to one point from March.

Full report at NFIB.com | https://assets.nfib.com/nfibcom/SBET-Apr-2021.pdf (PDF)

Yesterday, QuickBooks released the findings of a survey of 1,600 current and prospective small business owners on what they expect their futures to be.

One finding is especially promising — for all generations of small businesses: The future of small businesses includes hope.

Download the Report (PDF)

The Future, as Predicted by Today’s Small Business Owners

23% | Working at home
The percentage of small businesses that will have a 100% remote workforce by next year

28% | Online sales boom
The percentage of small businesses that are selling more products and services online this year

94% | Coronavirus
Percentage of small businesses who say coronavirus influenced that change

86% | Rapid innovation
Percentage of small businesses that have developed new products and services this year have done so as a result of the coronavirus

45% | Surviving tough times
Of those surveyed, the percentage who applied for a government-backed relief program this year

61% | Percentage of applicants who were granted funds

42% | Side gig to small business
Percentage of those who surveyed who operate a “side gig” who plan on converting it into a full-time business

28% | Adversity sparks innovation
The percentage of those who say they want to start business during the next 12 months who say the coronavirus accelerated their plans

87% | Beyond digital
Percentage of those who plan on opening a small business within the next 12 months who say it will be a combination of online and offline

Growing industries
According to those survey, the fastest-growing industries for small businesses over the next 12 months will be accommodation and food services, arts and recreation, and retail

72% | New optimism
Percentage of those who plan on starting a business during the next 12 months who are optimistic about business prospects for the next 12 months (compared to 42% of current small business owners).

10% | Business planning
Less than 10% of potential business owners plan on writing a business business plan. (69% of current owners recommend it.)

The full report, including the survey methods, can be downloaded at the Quickbook website.