Small Business Optimism Climbs Again

by | Sep 23, 2025 | Business & Finance

Small Business Optimism rose modestly in August, according to the NFIB Small Business Optimism Index, which ticked up 0.5 points to 100.8. Small Business Optimism now sits nearly three points above its 52-year average of 98 as owners in El Monte, Baldwin Park, Rosemead, Arcadia, Temple City and Irwindale report stronger sales expectations and healthier operations. The net share of owners forecasting higher sales volumes in the next three months jumped six points from July to a net 12 percent in August.

Small Business Optimism Rises Locally
More than two-thirds of small business owners statewide (68 percent) rated their business health as good or excellent, up three points from July. Local Main Street shops in Baldwin Park and Rosemead have benefited from steady foot traffic and community events. In Arcadia and Temple City, restaurant and retail owners credit seasonal back-to-school promotions for improved revenues. Fayette Café in El Monte reported a 15 percent increase in weekday sales, mirroring the statewide uptick in owner confidence.

Community Confidence and Challenges
Despite better optimism, uncertainty remains high. The NFIB uncertainty index fell four points to 93 in August but still ranks as the 11th highest reading in 51 years. Small enterprises in South El Monte cite supply-chain delays and labor shortages as ongoing hurdles. About 11 percent of owners named inflation as their top concern, down slightly from the prior month. The net percent of respondents raising average selling prices declined three points to 21 percent, the lowest level in 2025 but still well above the historical average of 13 percent.

Price Plans and Staffing Outlook
Looking at forward pricing, a net 26 percent of owners plan to increase prices in the next three months, down two points from July. Local craft shops in Irwindale and Baldwin Park are weighing modest price hikes to offset higher material costs. Meanwhile, Temple City’s tech startups are focusing on staffing, with 28 percent planning to add jobs—a sign that hiring remains a priority despite rising wage pressures.

Looking Ahead for Small Businesses
The mild rise in optimism suggests local entrepreneurs are weathering economic headwinds. Community leaders in Rosemead and Arcadia are partnering with the San Gabriel Valley Council of Governments to offer free workshops on digital marketing and cost management. Baldwin Park’s chamber of commerce recently hosted an NFIB webinar on financing options for growth. Business owners can review the full NFIB Small Business Optimism Index report at the NFIB website.

For Mid Valley News readers, the latest NFIB results offer a clear picture: small businesses are reporting stronger sales outlooks and improved operations, even as uncertainty and cost pressures persist. By tapping local resources and engaging with community programs, entrepreneurs in El Monte, South El Monte, Baldwin Park, Rosemead, Arcadia, Temple City and Irwindale can build on this optimism and sustain growth.