Small Business Owners’ Optimism on the Economy: Are Certain Owners More Optimistic than the Others?
Small Business Owners’ Optimism on the Economy: Are Certain Owners More Optimistic than the Others?

Summary/Abstract: In this study, we examine the relation between small business owners’ views on the economy and their characteristics like experience, gender, age, political view, education, and race. Our main question is this: “Do business owners with certain characteristics hold a more positive view on the economy?” Our nonparametric tests show that, in the states where business owners have a more positive view on the national economy, there are more female owners, owners tend to be younger, and they tend to support “other political” views (i.e. they are not independent, conservative, or liberal). At the same time, in these states, there are fewer middle-aged owners and fewer “strong conservatives” when compared to the other states. In these states, owners’ experience, education, and race are not significantly different from firms in other states. On the other hand, in the states where business owners have more a positive view on the state economy, there are fewer Hispanic owners and fewer middle-aged owners. In these states, the owners are less-experienced and there are fewer owners that are in the “Lean liberal” group. We also find that, in these states, there are more white owners and older owners, and there are more owners in the “Lean conservative” group.

• Details
• Contents