Business Owners Fed Up With Washington, But Many Are Optimistic on Their Prospects A survey of business owners found that nearly half are more confident than a year ago.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.


Business owners are frustrated with the fiscal turmoil in Washington, D.C., but nearly half of them -- 45 percent -- are at least somewhat more confident in the growth prospects for their business than they were a year ago.

This pulse-reading comes from an annual economic outlook survey released Thursday from Pepperdine University and Dun & Bradstreet Credibility Corp.

The report shows about a quarter of business owners feel neither more nor less confident about growth prospects for their business than they were a year ago. That leaves only 30 percent at least somewhat less confident. The report is based on a 25-question survey between Jan. 14 and Jan. 28 to which 2,713 businesses responded.

Related: Thinking About Hiring? Signs of Life in the Job Market

While business owners are holding onto "cautious optimism," a declining number of business owners feel this way. That's troubling, says John K. Paglia, associate professor of finance at Pepperdine University, who collaborated on the survey. One year ago, 55 percent of survey respondents were at least somewhat more confident in growth prospects for their business and 26 percent were neither more nor less confident.

"Business owners have been struggling for the past few years, since the financial crisis hit, and they have remained hopeful," says Paglia. However, "as time continues to pass with no significant improvements in their operations, they are becoming increasingly frustrated and less hopeful."

Related: Most New Business Ideas Hatching for 6 or More Months

Overall, business owners aren't as optimistic about the overall economy as they are about their own companies. They expect U.S. gross domestic product to inch up by only 0.4 percent in 2013, according to the survey. A year ago, business owners were more optimistic about economic growth and predicted that GDP for 2013 would grow by 1.9 percent.

Entrepreneurs's optimism about their own businesses stands in contrast to their dour expectations for the U.S. economy overall. "Small business owners and entrepreneurs are eternal optimists," says Jeff Stibel, chairman and CEO of Los Angeles-based Dun & Bradstreet Credibility Corp. He says typically entrepreneurs communicate pessimism only when they can't get access to capital to run their business. Of late, financing for small businesses has been improving slightly, he says.

Related: Small Business to Washington: Reduce the Debt

How are you feeling about business conditions over the coming year? Leave a note below and let us know.

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Editor's Pick

Related Topics

Business News

'Please Fix This': Elon Musk Frantically Emails Employees During Livestream Glitch

Musk attempted to livestream his visit to the U.S.-Mexico border.

Business News

Costco Isn't Facing Devastating Surges in Theft Like Target and Walmart — and the Reason Is Very Simple

The retailer's CFO revealed its strategy during a fourth-quarter-earnings call.

Business News

These NYC Roommates Created a Fake Restaurant and Accidentally Garnered a 2,000-Person Waitlist — So They Opened a Pop-up for Real.

The Gen Z'ers dubbed their apartment "Mehran's Steak House" on Google Maps during the pandemic.

Personal Finance

5 Entrepreneurial Mindset Principles That Empower Financial Literacy

Adopting the right mindset is key to financial literacy. Follow these five guiding principles to enhance your understanding of wealth creation and growth.