Small business optimism increasing

According to the National Federation of Independent Business' optimism index, small business optimism has increased in the United States from a nine-month low.

Confidence in the small business market increase for the first time in four months in August with companies anticipating more hiring and sales. The index increased to 92.9 from a nine-month low of 91.2, which was reported in July.

According to the National Federation of Independent Business, five of the index's 10 components contributed to the increase in optimism during August.

“The labor market readings were very solid,” said William Dunkelberg, the group’s chief economist. “Expectations for business conditions in early 2013 improved substantially, perhaps a forecast of the election outcome and the chance for a favorable resolution of our fiscal dilemma.”

Sentiment in the labor market increased to its highest level since 2008, in addition to a net 10 percent of employers saying they planned on adding more workers to their companies.

Business owners are also expecting sales to improve. A measure of the sentiment showed business owners believe sales will increase by 5 points to a net 1 percent this month while a net minus 2 percent said they expected there to be better conditions in the next six months.

The jobless rate will continue to fall if the predictions of business owners come to fruition. The optimism index also showed that 18 percent of respondents reported that it was hard to fill a job opening, which is up from 15 percent in the month prior.

According the Labor Department, payrolls increased less than predicted in August and the unemployment rate decreased as Americans left the labor force.

Two of the contributors to the improving small business market are EarlyShares.com and CometAds. The two companies joined to start the Small Business Challenge, attracting a number of businesses that are competing for a share of $50,000 in cash and advertisements by having the best small business marketing plan.

“The Small Business Challenge is our way of safeguarding that small businesses, which provide value to the national economy, are not overlooked because of limited funding options,” said Maurice Lopes, founder and CEO of EarlyShares.com. “As we move into 2013, crowdfunding will open doors for more small businesses, but in the meantime, the Small Business Challenge is a way to support their growth right now.”