The “small business sector is showing signs of a potential slowdown.” That was the conclusion of a business survey by the National Federation of Independent Business (NFIB).
In fact, the survey showed that small business optimism hit its lowest levels since March of 2012. The usual issues of inflation, high interest rates and fishing workers was again the top concern and the reasons why the small business community doesn’t see brighter days ahead in the Biden economy.
With new inflation data that just came out, it shows the shows the numbers are going into the wrong direction and small business says it’s still the top issue for problems inside the business community.
According to the survey, problems for small business will get worse this year.
Besides inflation, the report showed that small business hiring would be on the downside in 2024. Business owners also said sales will be down and to counter that, over 60% said they already have raised and will continue to raise prices this year.
“I don’t care what the headlines from the White House are saying about a “fantastic economy.” Our NFIB members are telling us a different story,’ said NFIB Florida Director Bill Herrle.
The credit market is also tightening. NFIB report found that with higher interest rates, smaller companies were having a rough time to get capital funding and the current loans they have, some NFIB members said they were paying a higher interest rate.
Financial analyst Steve Beaman says because of the credit tightening banks are putting into place, small business members like those in the NFIB and others have to turn to alternative financing where businesses will have to pay a higher rate.
“I could understand these survey numbers if this was 2021, coming out of covid. But 3 years later, the economy should be thriving and our members say it’s not,” said Herrle.
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