Listen to this articleSmall business owners across the nation are the most optimistic they’ve been since early 2020. In a post-pandemic climate, inflation remains a challenge for owners, but they are optimistic about artificial intelligence.
That’s according to the Small Business Index, released Wednesday, by Met Life, which has a presence on Long Island, and the U.S. Chamber of Commerce. The index is based on an online survey of small business owners and decision makers that was conducted between April 19 and May 6.
The Index score – it measures small business owners’ perceptions of business operations, environment, and expectations – hit 69.5 up from 62.3 in the last quarter.
In the survey, 73% of respondents said that they expect their revenue to increase in the next year, the highest reading recorded since the start of this survey in 2017. Nearly half said they expect to increase investment in the next year, up 10 percentage points from last quarter.
“Main Street employers are showing confidence and resiliency in the face of persistent inflation,” Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, said in a news release about the findings.
“Last quarter’s survey showed signs of confidence drifting upward with small businesses optimistic about revenues in the next 12 months,” he added. “Main Street employers’ comfort with cash flow remains high and is a key reason why small business owners are bullish about their ability to meet customer demand and solve challenges facing their communities.”
For the eighth consecutive quarter, inflation remains the biggest concern for owners, according to the survey.
“Small business owners’ continued adaptability and growing optimism is inspiring and a positive sign for the economy,” Cynthia Smith, senior vice president of regional business at MetLife, said in the news release. “As these employers continue invest in and hire for their businesses, they should take a holistic approach and explore solutions like voluntary benefits that can help build their culture and attract and retain top talent.”
Meanwhile, small businesses expressed optimism about the future of AI.
A majority said they believe hiring workers with AI skills could save them time or money in the long run. Many said they viewed AI as a skill that would reshape the workforce. Two-thirds of small businesses say they expect AI to change the roles they have on staff in the future or expect AI proficiency to be listed in future job postings. Three-quarters of small businesses said that having employees who use AI tools could give them an edge against competitors.
AI can enhance productivity for businesses whose resources are limited. The technology can play a role in boosting supply chains with tools to improve demand forecasting, logistics and more, according to a report from EY Parthenon.
A report from the Center for Economic Studies saw a jump in AI usage in 2023, though it also revealed that the technology’s application is “highly uneven” across sectors and states.
