Small business owners have endured a difficult four years. Before the global COVID-19 pandemic, many were benefiting from economic growth between 2017 and 2020. But when the pandemic struck, supply chains became strained and inflationary pressures intensified, even as consumer behavior shifted and work moved largely into people's homes. Consequently, the small business optimism index by the National Federation of Independent Businesses (NFIB) plunged in early 2020 to its lowest reading in four decades.

In this UPdate, we analyze the latest NFIB optimism figures and explore what they might mean for investing in small- and mid-cap sectors going forward.