Although small business owners have been concerned about inflation, it looks like optimism is on the rise – according to the third quarter MetLife & U.S. Chamber of Commerce Small Business Index. Joining us to dive deeper into this optimism as well as insights from the recently concluded Co-100 event in D.C. is Tom Sullivan, the Vice President of Small Business Policy at the U.S. Chamber of Commerce.
Key Takeaways
1. Despite inflation remaining a top concern for small businesses, optimism is rising as inflation rates have improved. The MetLife U.S. Chamber of Commerce Small Business Index reveals that owners are increasingly hopeful, especially as the inflation rate has dropped from 8.5% to 2.5%. Although inflation isn’t fully resolved, small business owners are more positive about the economic outlook for 2025.
2. Sullivan highlights that small business owners expect a post-election bump in sales and revenue, regardless of who wins the White House. He notes that there’s typically a slowdown in transactions leading up to the election, but optimism grows as the election passes and businesses move forward without the uncertainty. This trend is seen every four years, as companies prepare for a resurgence in activity.
3. A significant takeaway from the U.S. Chamber’s research is that over 70% of small businesses are more attuned to this election than four years ago. Many business owners believe the election’s outcome will directly impact their operations, and they are paying close attention to the political landscape, signaling a heightened level of awareness and concern about potential policy changes.
4. The recently concluded Co-100 event brought together the top small businesses in the country. Sullivan shares inspiring stories, such as Lee Rhodes from GlassyBaby, who built her glass-blowing business from a deeply personal experience as a cancer survivor. Her company has grown significantly and donates 22% of its profits to charity, exemplifying the resilience and community focus of small business leaders.
5. Key economic indicators, such as interest rates, gas prices, and inflation rates, are gradually improving, which could create a more favorable environment for small businesses in 2025. Sullivan mentions the Federal Reserve’s plans for further rate cuts alongside a general return to economic normalcy. Small business owners are cautiously optimistic about the future, seeing these improvements as signs of recovery.
“Even with the improvements in inflation, it would be wrong to say the issue is behind us. But the optimism we’re seeing from small business owners heading into 2025 is encouraging, especially as they expect a post-election bump in sales and revenue regardless of who wins the White House.” - Tom Sullivan.
