Small Business Optimism Is Rising

Optimism among small-business owners rebounded in January from a four-month low, as more companies planned to hire and buy equipment, a private survey found.

The National Federation of Independent Business' index of business optimism increased 2.4 points during the month, to 98.9, the Washington-based advocacy group said.

Some 30 percent of small-business owners said they expect to purchase equipment during the next few months, compared with 26 percent who said so in December. The survey results are consistent with economic growth of around 2.8 percent in the current quarter, the group said.

Twenty-three percent of small businesses plan to create more jobs in the next three months, up from 14 percent in December.

Seven of the 10 index components in the survey rose last month.

Fifteen percent of small-businesses owners polled said they added workers in January, and more than a quarter reported unfilled job openings.

Get Involved In The Small Business Community

I just came across a press release that Dell is holding a competition to find the best small business that "has used technology to drive a significant change or develop a competitive advantage in delivering superior customer value and experience."

While the message could be simpler, Dell is doing a lot of things right here:

• Don't go it alone - Dell has partnered with the National Federation of Independent Business (NFIB) to put on the competition and help promote it
  
  
• Give prizes - Aside from the recognition, the winner receives $30,000 in free Dell products and a lifetime membership to the NFIB. There are also prizes for the top 9 finalists
  
  
• Offer something unique - While the products and NFIB membership are good starters, the winner also gets to spend a day with Dell founder Michael Dell at the company's headquarters. What better experience could a small business owner ask for than to learn from one of the true entrepreneurial success stories of our time (see yesterday's post Teach Entrepreneurs What You Know).

Running contests and getting involved in the small business community is a great way to stand out, attract attention, and build a brand as a company that cares about entrepreneurs.

Politicians Targeting Small Business

As small business owners are increasingly becoming more influential, it's not only big business and other entrepreneurs who are trying to tap into the lucrative market. Politicians also see the opportunities and are trying to get their message out to the small business community.

How are they selling themselves?

A post in MyDD, a blog for Democrats, outlines some strategies for politicians to use to reach small business owners. Among the suggestions observations are:

What type of people are small business owners?

They have a very strong sense of self reliance and personal accountability. Community is highly valued by Small Business People. The operate their businesses and employ people in our communities. They raise their families and worship together with us in our communities. They give back to their communities by serving in Kiwanis, Optimists, and all other manner of civic organizations, both international and local in scope. Small Business People also vote overwhelmingly Republican.

What strategy should you use to talk with small business owners?

The first thing to do is to identify which among your values is most applicable to this subject. Small Business People value personal accountability. They know full well that given an even chance, they and they alone, are responsible for their own success or failure. Small business people value community. They raise their families, worship and run their businesses in their communities. They are the backbone of the Kiwanis, the Optimists and other civic organizations. They run for City Council, belong to the Chamber of Commerce and support their churches and local charities.Small Business People value independence and freedom from over burdensome governmental regulations. Their trade group is the National Federation of Independent Businesses. The issues that are important to them include competition, government and regulatory reform and tax relief.

The post goes on to give Democrats ammunition to use against the Republicans when talking with small business owners. You can read the full post on MyDD here.