Small business owners in this economy are feeling a little apprehensive, according to the National Federation of Independent Business.
It’s May economic trends survey, which was released Tuesday, finds that small business optimism increased only slightly from the previous month, though still well below the survey’s historical average. And its uncertainty index has soared to the highest level since November 2020.
Marketplace called business owners and asked them what’s bothering them so much.
Northern Virginia-based Stitch & Rivet sells handmade leather Bags and purses – the kind of treat shopping that people think twice about these days.
“Things are going for me like a lot of people, which is ‘meh,’” said owner Katie Stack. She’s not sure when sales will increase.
At this point, in a more typical year, you’d be booking your spot at the big Christmas markets, which can generate your business between $12,000 and $20,000.
“You have to pay that money in the summer. “I have decided that I will not risk that amount of money this year,” she said.
In southern Utah, historic Ruby Hostel You are also feeling the uncertainty. General manager Lance Syrett said he sees some very busy stretches. Until, he said, “every time there’s a news story that says maybe we’re headed for inflation, well, people start holding on to that money.”
Syrett is planning for a quiet summer, with fewer families wanting to travel to Bryce Canyon National Park. That, plus high interest rates, means putting off expanding the inn.
“We are definitely concerned. You know, it’s not like we’re going to borrow money to build a new restaurant here at the resort or more hotel rooms,” he said.
This wait-and-see approach is common in the small business world right now, said NFIB chief economist Bill Dunkelberg. “Uncertainty is the enemy of progress and spending,” he said.
Another thing clouding business owners’ perspective?
“I feel like the presidential election will have a bigger impact on my business,” said Alejandro Flores-Muñoz, who runs Combined tacosa food truck and catering company in Denver.
She is concerned about wholesale inflation, loss of customers due to rising menu prices and her status under Deferred Action for Childhood Arrivals. “Without that work authorization, my future in this country is in limbo,” she said.
Come November, Flores-Muñoz added, the path forward for his business will be clearer.
There are many things happening in the world. Regardless, Marketplace is here for you.
You trust Marketplace to break down world events and tell you how they affect you in an accessible, fact-based way. We count on your financial support to continue making it possible.
Your donation today powers the independent journalism you trust. For as little as $5 a month, you can help support Marketplace so we can keep reporting on the things you care about.