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October 04, 2004
Small Business Indices Differ, But the Devil is in the Detail
The National Dialogue on Entrepreneurship reports on two very differing views of small business indices.
"It was the best of times; it was the worst of times. That’s the message from two small business indices released earlier this month. The National Federation of Independent Business' (NFIB) monthly index of small business indicators shows a slight drop in small business confidence from July’s near-record levels, but the overall level (102.9) of small business owner's confidence is quite high compared to recent months. Meanwhile, Rep. Nydia Velazquez (D-NY) and her fellow Democrats on the House Small Business Committee have released their own take on the state of small business in the second quarter of 2004. Their view is decidedly more gloomy as their Index reached a seven-year low. The index includes seventeen measures that track job growth, new orders, fuel costs, and other key indicators. Poor conditions facing small businesses are attributed to rising business costs (especially for fuel and health care), difficulties in accessing capital, and limited job growth."
I will go with the source that has the interests of small business as their agenda. The NFIB does not pull punches when reporting small business news and trends. They have presented bad news and good news as it happens.
The Democrats, on the other hand, have created an extremely biased index that fits their agenda, but not necessarily that of small business owners. They weight health care costs very heavily in their index, which fits their push for national health insurance more than small business' concerns. It is an issue small business is facing, but not one of the most important issues as represented in this index.
Posted October 4, 2004 07:43 AM
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at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
