The index fell 4 points to 110 from its record high 114 in the fourth quarter of 2006. 90% of small businesses surveyed said they are satisfied being an entrepreneur and 78% said they would do it all over again.
The index measures 6 variables - financial situation, cash flow, revenues, capital allocation, job hiring and credit availability for both current and future expectations.
According to Wells Fargo senior economist Scott Anderson, "The slight drop in small business owner confidence was evident in both the present situation and future expectations components of the index, suggesting weaker current and future conditions than the last quarter of 2006. The combined pressures of high gas prices, resetting mortgage rates, and moderating home price growth continue to put strains on household balance sheets."