Small business owners more optimistic after election

By Casey Harper
The Center Square

Newly released survey data shows that since President Donald Trump won the election and Republicans took control of the Senate, small business optimism is now higher than any time during the Biden administration.

The National Federation of Independent Businesses for over 50 years has tracked small business owners’ optimism about the future of their business, and that optimism has shot up since Trump won the White House in November.

The index rose by 3.4 points in December. The latest numbers are above the 51-year average and the highest since 2018, when Trump was last in office.

“The net percent of owners expecting the economy to improve rose 16 points from November to a net 52% (seasonally adjusted), the highest since the fourth quarter of 1983,” NFIB said in its report. “The percent of small business owners believing it is a good time to expand their business rose six points to 20%, seasonally adjusted. This is the highest reading since February 2020.

Trump has made clear a more business-friendly tax and regulatory environment is high on his agenda. He has also pledged to increase domestic energy production to lower prices for Americans.

“Optimism on Main Street continues to grow with the improved economic outlook following the election,” NFIB Chief Economist Bill Dunkelberg said in statement. “Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”

Other recent surveys show the majority of Americans, not only business owners, are optimistic about Trump's return to the White House.

Gallup’s post-election survey of economic confidence rose a significant 9 points after Republicans’ gains in November.

“These shifts are largely a function of changes in partisans’ perceptions about the outlook for the economy, likely a reaction to Trump’s election as president,” Gallup said in a recent report. “Many more Republicans now view the economy as getting better, and many fewer say it is getting worse. In contrast, fewer Democrats see the economy as improving, and more see it worsening.”