A recent survey by the National Federation of Independent Business (NFIB) has revealed that small businesses are facing a potential slowdown in the Biden economy. The survey showed that small business optimism hit its lowest levels since March 2012, with inflation, high interest rates, and finding workers identified as the top concerns.
Inflation has been a major issue for small business owners, with recent data showing that numbers are moving in the wrong direction. The survey predicts that problems for small businesses will continue to worsen throughout the year. Additionally, hiring is expected to decrease in 2024, with sales being lower than anticipated. Over 60% of business owners have already or plan to raise prices to counteract these challenges.
Financial analyst Steve Beaman suggests that due to credit restrictions imposed by banks, small business owners may need to seek alternative financing options, leading to higher interest rates. Despite positive economic headlines, NFIB members like Bill Herrle argue that the reality for small businesses is quite different, with ongoing challenges that were unexpected years after the pandemic.
