California small business owner optimism rises

2/17/2011

Only 10 percent of small business owners in the state of California anticipate that 2011 will be a worse year than 2010, according to a recent survey conducted by Citibank. The majority (54 percent) said they believe this year will be better than 2010, while 36 percent expect it to be about the same.

Despite this optimism, Californian business owners are well aware that challenges exist in their paths to success. Nearly one-quarter (24 percent) cited increasing healthcare costs to be the leading obstacle, while others named the rising prices of raw materials. However, 21 percent of respondents expect relaxing small business lending practices will help them achieve success in 2011.

"Small businesses are the largest source of jobs in the state of California, and their growing optimism represents an incredibly positive development," said Rebecca Macieira-Kaufmann, president of Citibank California. "Though challenges remain, the results of our latest survey provide strong evidence that California's small businesses feel more confident about the current environment and about 2011."

Many businesses are preparing for the upcoming year by hiring more workers, recruitment marketing firm HireClix recently told The Street.