NV small business owners more confident in local economy compared to U.S.
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A new survey shows that Nevada small business owners are more confident in their local economies compared to the national economic picture.
The survey of 400 small business owners in Nevada, conducted by Nevada State Bank and the research firm Applied Analysis, found that 47% of small business owners think their local economies are headed in the right direction while only 35% have the same faith in the U.S. economy.
Rod Jorgensen, director of counseling for the Nevada Small Business Development Center, says that from working directly with business owners and entrepreneurs, he's seen and heard how their perceptions of the economic climate are continuing to brighten.
"Let's say it's a husband and wife," Jorgensen explains, "and one of them is looking at leaving their employment to open their own business or buy their own business. They're feeling more comfortable with moving forward with that because the other spouse, their position feels more firm; they're not going to see anymore layoffs. So the other spouse can look at another opportunity without totally jeopardizing the family."
According to Jorgensen, increases in residential real estate values may also play a critical role when it comes to someone's emotional sense of economic security:
"If you've been living in your home the last six or seven years, and you owe more than what it's worth, that's not a good feeling. Now given the increase in residential real estate values, more and more people are above water on their homes and some even have tangible equity in their homes that they potentially could borrow against for their business."
Another key factor in growing small business development in the region, Jorgensen says, is supporting entrepreneurship among recent college graduates so they stay in area instead of heading to larger urban markets.