The Principal Financial Well-Being IndexSM: Business Owners
American business owners are more optimistic about the economy compared to a year ago and remain confident in their own businesses, but fewer plan to add jobs according to the latest Principal Financial Well-Being Index: Business Owners (PDF: 300 KB). Of the economic factors having the greatest impact on business decisions, owners say health care costs top the list, followed by economic growth.
Key findings from business owners include:
Economy & Business Financials
- Nearly a third are optimistic about the economic outlook for 2014, up significantly from the previous year.
- Despite the bright outlook, three quarters of those with surplus capital say they aren’t spending it at this point. And, only a third of owners plan to add to staff, down from last year.
Role of Financial Professional
- Two-thirds are turning to financial professionals for help.
- Seventy-eight percent of those who work with a financial advisor for their personal finance believe they are making good progress toward their financial goals.
- Health care costs (22 percent) top the list of economic factors weighing heaviest on the minds, followed by economic growth (21 percent).
- More than half of business owners who use a financial professional completely understand or understand most parts of the Affordable Care Act compared to 35 percent who do not use a financial professional.
- When asked who had the most influence on their professional success, owners put their spouse (25 percent) on the top of the list.
- Of the over half (55 percent) who have a business succession plan, 39 percent plan to transition the business to family members.
- A family-like culture (56 percent) is the top reported advantage of working for a smaller company.
To learn more about Small Business survey results, listen to Amy Friedrich, Vice President of the Specialty Benefits Division at The Principal, on The Small Business Advocate® radio show.
NEW! Third quarter 2013 research on Business Owners:
The Principal Financial Well-Being Index: Business Owners surveys American business owners of small to medium-sized businesses with 10 to 500 workers. It is part of a series of quarterly studies examining the financial well-being of American workers, business owners, and financial advisors. The studies are released by the Principal Financial Group® and conducted online by Harris Interactive®.