Over the last few years, small businesses across the country have likely felt the positive effects of the broad economic recovery. But up until recently, many still seemed to be dubious of where all that improvement was going to leave them, and potentially pessimistic about hiring or expanding as a result. It’s only recently that these smaller companies are starting to take on more workers.
There have been many signs of economic improvement over the last few years but it seems that in the last few months especially small businesses are really starting to feel particularly good about them, according to a report from the Associated Press. Over the course of this year through the end of November, companies of all sizes have added some 2.65 million jobs, the best total for a single year since 1999. Much of that growth has been driven by small businesses.
Especially since the summer months began, small business hiring has continually moved upward by a number of metrics, the report said. Moreover, it seems that many owners think they’re going to continue to find themselves in improving positions to take on more workers through the end of 2014 and into the new year as well.
Why is this happening?
In general, many small businesses have seen growth in the last several months largely because the economic improvements of the past few years are finally being felt by individuals, who are feeling better about their own financial situations, the report said. As such, they’re spending more on discretionary purchases that small businesses such as independently owned restaurants can provide. That, in turn, can significantly boost revenues.
“People are in this ‘I deserve it’ mentality,” Misty Young, owner of four restaurants in Nevada and California that will need to expand hiring by 10 percent next year, told the news agency. “They’ve worked hard and they want to play hard.”
While the kind of spending increases seen in the last few months aren’t likely to continue at this level, the fact remains that owners may be able to continue positioning their companies for future success. That can involve taking the time to cut costs for small business insurance coverage, including finding more affordable policies for commercial insurance, to potentially save firms thousands of dollars every year. That money could then be devoted to improving other aspects of the company.