With the economy showing positive signs toward recovery in the past couple months, small business owners in Massachusetts are feeling more confident.
Should accelerated economic growth occur, these companies could have a need for additional business insurance if they plan to grow.
According to an American Express survey, 77 percent of small business owners in the Bay State have a positive outlook on the U.S. economy and business prospects, compared to just 54 percent across the country.
Additionally, 89 percent of Bay State small businesses plan to grow in the next six months, compared to 74 percent nationally.
Retailers Association of Massachusetts president John Hurts told the Boston Herald the increased positive outlook is being fueled by rebounding consumer confidence resulting from lower unemployment and higher values of homes and 401(k)s.
“It’s led to more consistent sales increases month to month, versus the last couple of years when you would see a good month followed by a drop in sales the following month,” he said. “Sales trends have been encouraging since last summer.”
Small business optimism up nationally
Although Massachusetts small business owners are more optimistic than those across the country, overall optimism was up in April.
The National Federation of Independent Business’ Index of Small Business Optimism jumped 2.6 points in April to 92.1, slightly higher than the recovery average of 90.7. Only two components – plans to make capital outlays and expected credit conditions – fell in the first month of the second quarter.
Despite the higher optimism, NFIB chief economist Bill Dunkelberg is still concerned about the future for small businesses.
“Small-business owners confidence saw an uptick this last month, but it was ho hum, yawn, at-least-it-didn’t-go-down reading,” he said. “The sub-par recovery persists for the small business sector.”
However, small businesses have said they plan to increase hiring – a positive sign.
Senior policy analyst at NFIB Holly Wade said hiring plans and job openings improved in February, which could be a good sign for small business growth.
As these companies begin to grow, the need for additional business insurance could arise. For example, a greater number of employees could increase the risk of someone being injured on company premises. With that said, small businesses might want to consider purchasing additional liability insurance, as these policies can provide assistance if they are ever sued by an employee or customer who gets hurt on company property.