Texas Border Business
By US Chamber of Commerce
The latest MetLife and U.S. Chamber Small Business Index finds inflation remains a top concern for small businesses.
Why it matters: This quarter’s Index score (62.1) remained unchanged from last quarter. That marked the largest quarterly drop since the start of the pandemic.
Be smart: Over half of small businesses (53%) say inflation is the top challenge facing the small business community, a dramatic 30-point increase since this time last year. This marks the fourth consecutive quarter that inflation tops the list of challenges.
By the numbers: Small businesses also continue to feel uncertainty about the broader economic environment.
· 27% believe the economy is in good health.
· 30% believe their local economy is in good health.
Yes, but: Small business owners are generally optimistic when it comes to the health of their businesses.
· 64% report that their business is in good health.
· 67% say they are comfortable with their cash flow.
What they’re saying: “The landscape I would say looks good, but we need to find the right hires that believe in our mission,” says Albert Vega, CTO and co-founder of Building Momentum.
Our take: “This quarter, small business owners did not see any improvement in the economic landscape. Although their own business may be doing okay, their confidence remains shaken,” said Tom Sullivan, Chamber Vice President of Small Business Policy. “We’re calling this phenomenon secondhand pessimism — a divide between how businesses and consumers say they feel about the economy (bad) and how they’re acting (still spending and hiring).”
Dig deeper:
· We looked at how small businesses engage with their communities. We found 91% of small businesses believe that businesses should give back to their local communities.
