Despite increased concerns about inflation and taxes, Millionaire business owners and entrepreneurs are feeling more optimistic about the economy, according to a recent wealth level study conducted by Millionaire Corner.
Though the numbers are still elevated, compared to last year’s survey, business owners expressed slightly less concern over some of the issues most pressing on the economy. Just over three-quarters (76 percent) said they are concerned about a prolonged economic downturn, down from 82 percent last year. Eighty-one percent are wary about the national debt, a two percent decrease, and two thirds (66 percent). Two-thirds are keeping close watch on the political environment, down from 73 percent in 2010.
A majority are also feeling good about weathering the recent market downturn in the wake of the Aug. 5 downgrade of the U.S. debt. Fifty-six percent said they were better prepared compared to the economic meltdown of 2008. Just over 59 percent said that the 2008 crisis helped them to better cope with the recent economic challenges. Both of these findings were higher than the overall average of total investors surveyed.
Business owners and entrepreneurs are considered to be the engine of economic growth. Our study finds a balance of optimistic attitudes and realistic concerns. The most pressing, 73 percent of business owners and entrepreneurs say, are inflation and risks of a double-dip recession. This is up from 59 percent last year. More than three-quarters (77 percent)—up from 65 percent in 2010—cite tax increases as a major concern.
Citibank’s quarterly small business survey, released this week, found similar concerns and attitudes. In that survey, 90 percent said they are particularly concerned about a double-dip recession, but that they feel better prepared if it comes to pass. Almost 80 percent said they were either growing or ready to grow.
More than 80 percent said that owning a business was key to fulfilling the American Dream. Only five percent said they plan to reduce their workforce over the next year, while 17 percent plan to increase their staff.
The entrepreneurial spirit is undimmed. Another study released this week found that the number of independent contractors could grow by 28 million over the next two years.