Washington DC (January 29, 2024) – Holly Wade, Executive Director, NFIB Research Center I participated Yahoo!finance We discuss small business optimism and the challenges facing Main Street businesses in 2024.
Wade shares the following data N.F.I.B. The December SBET survey highlights how inflationary pressures, continued labor shortages and increased financing costs are impacting small businesses across the country.
Read Wade's full interview here: https://finance.yahoo.com/video/inflation-continuers-drain-small-business-205834175.html
“Small business owners are pretty pessimistic about how they're going to do business over the next six months and their opportunities for expansion. We've been seeing this environment for about a year and a half now, and the As we have been collecting this data for 50 years, our index has been below the 50-year average of 98 for about two years, especially in the last year, due to high inflation and a still-tight labor market. Because we have to operate in such a difficult environment, we are on the brink of economic recession.”
“Our research found that the first hit to inflationary pressures is on business owners' incomes…and they pass that cost on to customers…they also increase expectations internally to increase inflationary pressures. Productivity within your business [to absorb] Those costs are paid for in other ways. However, they are still struggling when it comes to increased costs of supplies, inventory, and compensation. [both] We see that we continue to have very high standards in terms of retaining current employees and attracting applicants for open positions. And for some, increased financing costs mean it's become very difficult to absorb and find ways to absorb those costs. Stay competitive and pass those costs on to your customers. ”
“We are still seeing historically high levels of job openings in the small business sector. , it's frustrating for many owners who have struggled to fill these positions. This is one of their main challenges. Still, one in five small business owners say their business says the biggest problem facing them is the labor market.
