Some see small businesses as the lifeblood of the American economy, and on Tuesday the National Federation of Independent Business found that small business owners are more optimistic about the economy than they have been so far this year.
But compared to historical averages, optimism remains low. And that’s the way things are in the business world these days. There are roses and there are thorns.
The biggest challenge in running a small business today is inflation.
“You’re seeing inflation in everything, right?” says Sheena Azmendis, who runs the Miami-based consulting firm The WellBiz.
“Our workers’ compensation insurance just went up. It just went up,” she said. “We’re seeing increases on health care. We’re seeing increases across the board.”
Workers’ pay is also rising. Small businesses may be facing an easing labor market, but it’s still tough, said Holly Wade, chief research scientist at the NFIB.
“There are still a great many employers who say they plan to increase compensation,” she said, “and they have to figure out how best to absorb these increased costs.”
Bob Kingery felt that pressure at Southern Energy Management, a Raleigh company that installs solar panels to make buildings more energy efficient.
“For the last three years, we’ve been focused on how to increase wages for our hourly team members who work in the field, so they can live in the Triangle region of North Carolina, or anywhere in North Carolina,” he said.
Kingery said he’s been increasing pay for employees, but overall he hasn’t had to deal with hiring issues or postpone any major purchases.
“We’re optimistic. It’s very, very rare to feel that way in the world around us,” Kingery said.
Tuesday’s survey also offered signs that the economy may not be as bad as some business owners feel.
“The hard indicators are looking pretty good. Meanwhile the soft indicators – people’s expectations and assessment of the situation – are way down,” said Liz Wilke, chief economist at payroll firm Gust.
She said there was a big gap between business owners’ actual situation and how they wanted it to be.
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