PNC Survey: Brighter Days Ahead for Business Owners

The PNC Financial Services Group, Inc. conducts a semi-annual survey of businesses. Since the studies began in 2003, they have gauged the thinking among business owners pertaining to their overall expectations and the way they intend to conduct their business over the next half-year.

The April 2014 survey paints a somewhat rosier picture than ones in recent history. The brutal winter did not help matters much in the last survey, which was conducted in October – when about three-quarters of small and medium-sized business owners were not interested in hiring new workers or getting additional loans.

Today, however, 37 percent see a bright future for their companies. This is a huge upswing, as in October, only 15 percent were optimistic about their short-term future prospects.

More than one-fifth (22 percent, to be exact) intend to hire new employees, a six-percent increase over last fall and last spring’s surveys – and the highest number in about two years. Another third expect to increase their employee salaries this year, which is a very significant 10-percent increase over October’s survey.

Even the looming minimum-wage increase didn’t affect things as much as one might suspect. Seven out of every 10 employers surveyed said a rise in the minimum wage would not have a negative impact upon their overall hiring plans.

The news wasn’t nearly as good for the loan industry, as only one out of every seven business owners said they would probably/definitely take out a new business loan. Six months ago, 20% said they would probably/definitely do so. But this is actually a good thing – because fewer businesses ultimately end up needing these loans.

The concern of last winter has thawed along with the ice ... and it has been replaced with a sunny forecast of bluer skies ahead for business owners.