Recent findings indicate an upswing in optimism among small business proprietors about the economy following the recent elections.

The Small Business Optimism Index from the National Federation of Independent Businesses (NFIB) climbed by eight points in November, reaching a level of 101.7, marking the highest score since June 2021.

Additionally, the Uncertainty Index experienced a notable reduction of 12 points, settling at 98, after hitting an unprecedented high of 110 in October, prior to the elections.

According to Bill Dunkelberg, Chief Economist at NFIB, small business owners are displaying increased confidence in the future economic landscape after the election, effectively ending a nearly three-year run of elevated uncertainty levels.

Dunkelberg remarked, “Business owners are particularly optimistic regarding tax and regulatory measures that promote robust economic development, as well as relief from inflationary burdens.” He added, “Moreover, small business owners are keen on expanding their enterprises.”

The percentage of entrepreneurs anticipating an improvement in economic conditions also saw a significant increase, leaping 41 points from October to a net of 36%, the highest level since June 2020.

Looking ahead to 2025, many owners are optimistic about the potential for growth, with the percentage of small business leaders who feel it is an opportune moment to expand their business rising by eight points to 14%. This reading is also the highest recorded since June 2021.

Despite inflation showing signs of subsiding, it continues to pose a major concern for business owners. In fact, 20% of them identified inflation (specifically rising input and labor costs) as their primary challenge in managing operations, edging out labor quality as the top issue by a single percentage point.