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Unformatted text preview: Group 2 : How to Make Small Business Owners More Optimistic Their confidence is at record lows. Because they're so important to the economy, policy should encourage positive expectations, says Scott Shane By Scott Shane Economic performance is near by the divination which done by itself. If business owners believe that the economy will get better in the future, they act in ways that lead to economic growth: They buy products, hire employees, expand inventories, and make investments. If they dont do that, we know what happens in the future ; few take those actions that are important to growth. While everybody's optimism matters, from rank-and-file workers to Fortune 500 company executives, small business owners' outlooks are of particular importance because their businesses account for more than half of nonagricultural private economic production in the U.S., according to the Small Business Administration. Without expansion in this sector, economic growth is weak at best. Statistical analysis confirms this view, showing that the level of small business optimism is a solid predictor of future growth. Main idea : - The main idea is about the economic performance, If business owners believe that the economy will get better,they act in ways that lead to economic growth. But if they dont, they will act upon the economic growth to have a better change. Unusual Pessimism At the moment, small business owners are very pessimistic. In September, Discover Card reported that in the monthly survey of 750 small business owners, the Small Business Watch confidence index was beat at 73.8, only slightly higher than the previous month. The National Federation of Independent Business's most recent...
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- Spring '11