File photo / Courtesy SBA
Diane Sturgeon
Updated: December 13, 2023
Inflation, staffing concerns weigh on small business confidence
Source: Q4 MetLife and U.S. Chamber of Commerce Small Business Index
A national index that measures confidence among small business owners fell from 69.2 in the third quarter of 2023 to 61.3 in the fourth quarter, returning to scores seen earlier this year and in late 2022.
Confidence in the U.S. economy is waning among small business owners who express concern about inflation and staffing shortages, a quarterly barometer shows.
The finding is based on a survey of around 750 small business owners and decision makers conducted in October by MetLife and the U.S. Chamber of Commerce
According to their latest Small Business Index report, the reading fell from 69.2 in the third quarter to 61.3 in Q4, returning to levels seen earlier this year and in late 2022.
“With inflation still outpacing revenue expectations, small business owners are wary of the future and continue to have an overall negative impression about the national economy,” said Tom Sullivan, vice president of Small Business Policy at the U.S. Chamber of Commerce.
“At the same time, holiday shopping is already setting records this year, and most small businesses say they are doing okay despite persistent headwinds,” he added.
About 64% of respondents view the health of their business as very or somewhat good. A slightly higher percentage, 67%, are somewhat or very comfortable with their current cash flow. That’s down slightly from 72% last quarter but unchanged from a year ago.
Other findings
- For the sixth quarter in a row, half or more of survey respondents see inflation as one of their biggest challenges.
- 45% report searching for, recruiting or interviewing new talent in 2023. Nearly half report searching for new talent in 2024 say it is hard to offer competitive pay and benefits, and 60% find it challenging to keep up with existing employees' salary expectations.
- 71% agree that employers should more often consider hiring incarcerated individuals, veterans, military spouses or legal immigrants.
- 68% plan to offer flexible work hours in the next year, while 48% plan to offer a hybrid or remote work environment. That's especially true for those in professional services sectors, at 64%.
Find the full report here.
Resources in Maine
In Maine, various organizations are at the ready to help any small businesses facing challenges.
“Maine businesses have proven time and time again that they are resilient, and we want to be sure they don’t feel like they have to do it alone," Diane Sturgeon, director of the U.S. Small Business Administration's Maine District Office, told Mainebiz.
"We encourage them to use our resource partners at SCORE, Small Business Development Centers, SBA Women’s Business Centers and Veteran Business Outreach Centers to identify programs that can help."
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