Small businesses are anticipating a more profitable year this year, according to a new survey.

After the first half of 2016, 62 percent of the small businesses polled by payroll service provider SurePayroll are reporting a profit, while 87 percent expect to be profitable in the second half of 2016. In addition, 47 percent are on pace to beat revenues from the prior year.

When small business owners were asked to name their biggest challenges in 2016, 22 percent cited slow economic growth nationwide, while 18 percent cited struggles in the local economy, and 17 percent said there are not enough qualified candidates to hire. In addition, 16 percent of the small businesses polled said they do not have extra cash flow for hiring and/or expansion or investment.

For more on the survey, see the SurePayroll Small Business Scorecard.