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Small Businesses: Difference between revisions
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* Very sensitive to rising interest rates, they have a very large proportion of floating rate debt | * Very sensitive to rising interest rates, they have a very large proportion of floating rate debt | ||
* They have less funding options | * They have less funding options | ||
==== NFIB ==== | |||
Overall, small business owners are clearly in a recession mood, expressing great concern for future business conditions. But until customers stop coming in, owners (especially in services) will continue to try to hire workers, increasing compensation to attract applicants and retain their current workforce. If inflation shows signs of cooling and the Fed relents (pause, but no rate cuts until inflation really declines), that will increase real wages now being paid and improve optimism for the future.<ref>https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-May-2023.pdf</ref> | |||
==== U.S. Chamber of Commerce ==== | |||
* “The challenges of our current economy may have delayed some small business owners’ plans to expand or hire more staff, but now they see opportunity for growth on the horizon,” said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. "Small businesses are again showing remarkable resiliency. There has been a strong majority reporting that their business is in good health over the last year and it’s clear many have high expectations for the future.” | |||
* “The percentages of small business owners expecting an increase in revenues and hiring this quarter represent record highs in the six-year history of the Index, which is a very promising sign,” says Cynthia Smith, senior vice president, Regional Business at MetLife. “While the current economic conditions may have stalled their plans to grow, the combination of small business owners’ determination, drive and positive outlook bodes well for the future.” | |||
* “Tightening in both credit and private equity markets is creating challenges for many small business owners,” says Sims. “Rising interest rates make it more challenging for some entrepreneurs to qualify for financing, although I have seen several loan guarantee programs step up and assist some of these borrowers in securing funding.”<ref>https://www.uschamber.com/sbindex/uploads/q2-2023-sbi-press-release-final.pdf</ref> | |||
== NFIB Survey == | == NFIB Survey == | ||