Optimism among small businesses continues to decline. According to the April survey by the National Federation of Independent Business, small business owners who are expecting better conditions over the next six months decreased by one point. State Director Dawn McVea said in their 48-year history of the survey…
“This is a record low for us, it’s a net negative 50% of owners feel that things will improve,” said McVea.
It’s the fourth consecutive month that optimism has declined among independent business owners. McVea said the driving factor for the net negative 50% outlook for the future is record inflation.
“Thirty-two percent of our small business owners are reporting that inflation is their single most important problem in operating right now,” said McVea.
McVea said ongoing supply chain issues, rising fuel costs, and inflation continue to compound earnings among small business owners. She said 70% of independent businesses have had to raise prices.
“But the net percent of owners raising their average selling price this month did decrease to two points to a net 70% but still that’s one of the highest readings on record,” said McVea.
Another reason small businesses are having to increase prices, McVea said is due to having to pay more in wages. And 93% of those surveyed report few or no qualified applicants for positions they were trying to fill.
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