Entrepreneurs Optimistic About Economic Conditions in 2012

Startup activity is often viewed as a sign of a healthy economy. While entrepreneurial trends tend to pick up during periods of high unemployment, it also points to strengths in core market drivers such as innovation and education.

A survey released last week by LegalZoom and the Kauffman Foundation suggests such activity remains strong, with 81 percent of entrepreneurs expressing confidence that their businesses will be more profitable in 2012. More than two-thirds of respondents - 68 percent - expect the economy to either improve or remain the same.

Entrepreneurs also expressed optimism about consumer activity, with three-quarters expecting demand to either rise or stay the same this year.

"High confidence in increased profitability is a great sign of things to come," said John Suh, CEO of LegalZoom. "Given that small businesses are the engine of job growth, it will be interesting to see how quickly this optimism translates into new hiring."

Already, employment trends have pointed toward recovery, with the jobless rate dropping once again in January to the lowest level in nearly three years: 8.3 percent. Analysts hope a slew of low unemployment claims this month will pave the way for another monthly decline.