Report: Small business owners growing more optimistic

Report: Small business owners growing more optimistic

As the economy begins to recover, many entrepreneurs are starting to grow more confident in the success of their ventures, new research suggests.

A recent survey from the American Express OPEN Small Business Monitor found that although many owners remain wary of the economy, they have become more confident in the past year.

A total of 48 percent of small business owners who were surveyed say that they are planning to make capital investments in their companies, which shows a 6 percent increase over last year. In addition, the number of companies that are planning to hire more employees has grown by 5 percent since the fall of last year.

Furthermore, younger entrepreneurs tended to be more optimistic toward current economic conditions, as 72 percent of respondents between the ages of 19 and 29 said that they feel confident in their career prospects and financial recovery. These feelings may be due to the increasing quality of campus-based and online MBA programs.

Susan Sobbott, president of American Express OPEN, said that individuals who remained successful during the economic downturn emphasize "the importance of managing cash flow, including getting paid faster by customers, as a means to generating investment dollars and driving growth."

By Stefanie Hughes