Small Business Owner Optimism Holds Steady
May 17 2007 - 9:00AM
PR Newswire (US)
Wells Fargo/Gallup Small Business Index: Small Business Owners
Report More Satisfaction and Success SAN FRANCISCO, May 17
/PRNewswire/ -- Small business owner optimism rose to levels near
last year's record highs in the latest Wells Fargo/Gallup Small
Business Index. The Index registered at 113 for Q2 2007, nearly
matching the high-score of 114 in Q4 2006. The Index tracks six key
measures for both current and future expectations: financial
situation, cash flow, revenues, capital allocation, job hiring and
credit availability. For the past three quarters, all six measures
have remained consistently strong, demonstrating an optimistic
outlook. In fact, 95 percent of respondents report feeling
successful as a small business owner. "Small business optimism
increased in the second quarter to levels not significantly
different from December 2006's all-time high of 114," said Dr.
Scott Anderson, Wells Fargo senior economist. "Despite fears that
higher gasoline prices would weaken small business demand, steady
job and income growth have helped sustain robust revenues and cash
flows for small businesses. These survey results are consistent
with our forecasts of a moderate rebound in economic activity in
the second quarter of 2007." The Q2 2007 results show more
respondents "extremely satisfied or very satisfied" as small
business owners compared to Q1 2007 (60 percent versus 50 percent,
respectively). Additionally, 83 percent of small business owners
said they would do it all over again if given the opportunity, up
five points from 78 percent in Q1 2007. About the Small Business
Index Since Q3 2003, the quarterly Wells Fargo/Gallup Small
Business Index has surveyed small business owners on their
perceptions of current conditions and future expectations relating
to financial situation, revenues, cash flow, capital spending,
number of jobs and credit availability. Results are based on
telephone interviews with approximately 600 small business owners
nationwide conducted April 10, 2007 through April 17, 2007. The
margin of sampling error is + 4 percentage points. About Wells
Fargo Wells Fargo & Company is a diversified financial services
company with $486 billion in assets, providing banking, insurance,
investments, mortgage and consumer finance through more than 6,000
stores and the internet (wellsfargo.com) across North America and
internationally. Wells Fargo Bank, N.A. is the only bank in the
U.S., and one of only two banks worldwide, to have the highest
credit rating from both Moody's Investors Service, "Aaa," and
Standard & Poor's Ratings Services, "AAA." Providing financial
products and services to more than one-and-a-half million
businesses with annual sales up to $20 million in all 50 states,
Puerto Rico and Canada, Wells Fargo is America's #1 small business
lender in total dollar volume according to the most recent CRA data
(2005). The second largest national SBA lender in dollars, Wells
Fargo is an SBA Preferred Lender in 28 states and the District of
Columbia, and originated 4,937 loans for $578 million in 2006. Its
diverse business services programs provide outreach and education
to women, African American, Latino, and Asian business owners about
financial services. Since 1995, Wells Fargo has loaned more than
$30 billion to women and diverse business owners. For more
information, please visit http://www.wellsfargo.com/biz. About the
Gallup Organization For more than 60 years, the Gallup Organization
has been a recognized leader in the measurement and analysis of
people's attitudes, opinions and behavior. While best known for the
Gallup Poll, founded in 1935, Gallup's current activities consist
largely of providing marketing and management research, advisory
services and education to the world's largest corporations and
institutions. DATASOURCE: Wells Fargo & Company CONTACT:
Allison White, +1-415-975-6291, or Web site:
http://www.wellsfargo.com/
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