Small business optimism soars in anticipation of Trump 2.0

waiting for Donald Trump A return to the White House sparked a surge of optimism on Main Street, according to multiple post-election polls.

NFIB’s latest Small Business Optimism Index jumped 8 points to 101.7 in November on election results that signaled a significant shift in economic policy for the Biden-Harris administration, snapping a 34-month streak of record-high uncertainty at its highest since June 2021.

Former President Donald Trump dances at his campaign rally in Crotona Park in the South Bronx on Thursday, May 23, 2024 in New York.Main Street optimism is rising, according to a post-election survey of small business owners. (James Devaney/GC Images/Getty Images)

It is the first time in 2.5 years that the indicator has risen above the 50-year average.9 of the 10 components of the optimism index increased, none decreased, and one remained unchanged from the previous month in October.

“In short, economic policy is important, and there’s no doubt that the election results have generated a lot of optimism, that uptick in optimism that we saw in our monthly economic survey,” NFIB President Brad Clowes told Bloomberg. “This week.

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“Small business Owners are looking forward to an administration that addresses the concerns of the little guys, half of America’s economy, and that’s tax policy that cuts regulations and restarts the economy,” Clowes added.

In the days following election night, the Fiverr platform conducted its own survey of business owners and found that nearly 90% were optimistic about the future, especially in sectors at the center of the election cycle, such as education (92%), finance (89%), and retail (89%).

Eighty-five percent of respondents told Fiverr they believe Trump will improve economic situation for small businesses, with higher optimism rates among larger organizations, 89% among businesses with more than 100 employees.

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According to the survey, both male (85%) and female (83%) business owners are hopeful about the new administration and look forward to business growth; almost 92% of women-run businesses said they expect an increase in revenue in the new year.

A closeted NFIB member said much of the optimism can be attributed to the hope that Trump’s signature tax cuts will be extended beyond his second term, given that Republicans now control not only the White House but both houses of Congress.

Republicans have won control of the White House and both houses of Congress in recent months, fueling optimism that the GOP will be able to extend Trump’s tax cuts. (Photo by Kevin Carter/Getty Images/Getty Images)

“If you look at one of the biggest concerns for small business owners, the small business deduction, their ability to deduct 20% of their small business income. business taxesit’s huge,” Close told Bloomberg.

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“It was created in 2017, right, so the economy took off after that tax bill passed,” he said. “That policy expires in a year. Small business owners know that, and they’re very optimistic. that the incoming administration, which has said it wants to extend and make that provision permanent, is ready to start on that.”