Nearly69 percent of small business owners currently have a positiveoutlook about their companies, as well as the environment for smallbusiness within the U.S. (Photo: Shutterstock)

While certain business segments are worried that tariffs and thethreat of an all-out trade war with China could wreak havoc ontheir bottom lines, Mom and Pops across the country are feelingoptimistic about the U.S. economy — as well as economy in their ownbackyard, according to the Q2 MetLife& U.S. Chamber of Commerce Small Business Index.

A majority of small businesses (59 percent) believe the U.S. economy is in good health, up sixpercentage points from last quarter (53 percent), according to theindex. Likewise, 51 percent say their local economy is in goodhealth compared to 53 percent last quarter (and 48 percent in thesecond quarter of 2018).

Related: Employee skills gap threatens America's economicgrowth

And small business owners are not sitting on theirhands: their increased confidence is causing more than a few togrow their businesses. More than a quarter (27 percent) of smallbusiness owners plan to increase investment in their company overthe next year, continuing a trend from the last two quarters, and28 percent plan to increase staff in the next year.

The index overall score increased this quarter to 68.7, meaningthat nearly 69 percent of small business owners currently have apositive outlook about their companies, as well as the environmentfor small business within the U.S.

This 3.1-point rebound follows a drop during the first threemonths of 2019 and matches the largest quarter-to-quarter increasein economic confidence in the history of the Index.

“Small business owners are showing renewed confidence that thenation's economy is poised for growth, following the resolution ofthe longest shutdown in government history,” says Jessica Moser,senior vice president and head of MetLife's group benefits small& specialty business. “This rebound in small business sentimentis a powerful leading indicator, as small companies have long beena significant growth engine for our country.”

This quarter, the index asked small business owners about howthey select health care plans for their employees. Most (69percent) say the process of navigating health care options can betime consuming, including Natalie Kaddas, president and CEO ofKaddas Enterprises in Salt Lake City.

“We work with a broker, and they put together 'here are yourannual increases' and 'here are some other offers you could do,'”Kaddas says, “We take that data and put it into a spreadsheet tolook at usage and how our employees used the insurance in thepast.”

Still, Kaddas says she and her staff could use moreguidance.

“I wish I had some more data and information,” Kaddas says. “Ifeel like some of my employees are choosing a plan without a lot ofinformation. There's an educational component that's missing, and Idon't necessarily have the skill set to try and bridge that gap—butI try.”

Other key survey findings include:

• The most important criteria for selecting a health care planare low premiums (20 percent) and low out-of-pocket costs likeco-pays and deductibles (20 percent).
• For larger small businesses with 100 or more employees,flexibility and variety in choice is also a major consideration,with 21 percent seeing this as a priority, compared to just 7percent for mid-size and 9 percent for small size small businesses.These larger small businesses also prioritize keeping out-of-pocketcosts (25 percent) and insurance premiums low (24 percent).
• Small businesses are the most familiar with more traditionalforms of health care coverage options, such as traditional grouphealth insurance (66 percent). They are less familiar with otheroptions: 43 percent are familiar with changes to contributionlimits for health savings accounts; 35 percent are aware of groupcoverage health reimbursement accounts; 28 percent are familiarwith Association Health Plans; 22 percent know about a qualifiedsmall employer health reimbursement arrangement and 19 percent haveheard of taxable stipends.
• Small businesses most commonly turn to health insurance orbenefit brokers, consultants, or agents (32 percent) forinformation regarding benefit plans. Fewer turn to Google or othersearch engines (9 percent), other business owners (7 percent), orsome “other” type of resource (11 percent) to find information onhealth care options. A small percentage (7 percent) says they donot know where to go for information on choosing a health careplan.

Read more: 

• Small business health insurance premiums cheaperthan individual market
• 3 government announcements that help smallbusinesses offer retirement & benefits
• Small business owners turning attention to boostingbenefits