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Small Businesses: Difference between revisions
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“This quarter, small businesses’ concerns over inflation are soaring and their view of the broader economy is darkening, though they still report that their own businesses are in good health,” said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. “Small business owners are pulling back a bit on spending as they see storm clouds in the economy appearing ahead.”<ref>https://www.uschamber.com/sbindex/uploads/q1-2023-sbi-press-release_final.pdf</ref> | “This quarter, small businesses’ concerns over inflation are soaring and their view of the broader economy is darkening, though they still report that their own businesses are in good health,” said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. “Small business owners are pulling back a bit on spending as they see storm clouds in the economy appearing ahead.”<ref>https://www.uschamber.com/sbindex/uploads/q1-2023-sbi-press-release_final.pdf</ref> | ||
Top challenges: | * One in five '''(20%) small business owners believe the U.S. economy is in good health''', down from 27% saying the same last quarter. | ||
* '''Fewer small businesses say they plan to increase investment''' over the next year (38% vs. 47% last quarter). | |||
* Despite small business owners seeing a weak economy, a '''majority (63%) say their business is in good health and 64% are comfortable with their cash flow''', both stable over the last couple of quarters. | |||
* Seven in 10 (69%) say they have retained the same number of employees over the past year and '''19% report increasing staff''' over the same period. | |||
* Small businesses owners cite various '''barriers to securing financing for their business including a time-consuming application process (52%), not having enough information on available sources of capital (46%), and not having enough revenue or assets to qualify for a loan (46%).''' | |||
* A majority of small business owners '''(62%) say that rising prices have forced them to seek out additional capital''' or financing for their business in the past year. But two-thirds of small businesses (66%) say that rising interest rates are limiting their ability to raise capital or financing for their business. | |||
* Almost half of the small business owners '''(49%) say their current access to capital or loans is good.''' This is slightly, but not significantly, lower than the share that rated their access to capital as good in Q2 2022 (54%). However, this is significantly lower than in Q2 2017<sup>1</sup> when 67% said their access to capital or loans was good. | |||
* '''Perceived access to capital also increases with the number of employees a business has.''' Nearly three in four (73%) small businesses with 20-500 employees say they have good access to capital, compared to 55% of those with 5-19 employees, and just 41% of those with fewer than five employees. | |||
* '''A majority of small businesses rely on their personal savings (69%), credit cards (64%), and local banks or credit unions (53%) for capital/loans.''' | |||
* When it comes to providing healthcare for employees, 85% of small business owners believe offering healthcare helps attract and retain employees | |||
'''Top challenges:''' | |||
* Inflation costs – 54% | * Inflation costs – 54% | ||