Small Business Update: how SMB owners are navigating inflation – Tom Sullivan

Although U.S. inflation has picked up, small business owners feel better about their business health, according to data from Q3 MetLife and the U.S. Chamber Small Business Index. Joining us on today’s episode of the U.S. Chamber of Commerce Small Business Update is Tom Sullivan, the Vice President of Small Business Policy at the U.S. Chamber, to provide us with more insight into the data. 

Each quarter, 750 distinct online interviews with small business owners and operators are used to generate the MetLife & U.S. Chamber of Commerce Small Business Index. The Index provides a thorough quantitative assessment of the small business industry and investigates the viewpoints of small business owners on current business and economic trends.

Key Takeaways:

1. Owners may not be entirely happy about inflation, but they are currently excited about the cash flow, inventory, and operations.

2. According to the Index, 52% of small businesses say their concerns about inflation are the top challenge, near record highs and consistent across the region for the sixth consecutive quarter.

3. the industry has seen a startup surge since the pandemic started. Sullivan believes this is due to two reasons:

• The government’s stimulus checks enabled entrepreneurs to jump into the world of becoming their own boss.
• Additionally, COIVD offered more obstacles quickly, unlike ever before. However, it did equip entrepreneurs with the ability to solve problems.

4. The current Index is at its highest since COIVD, but the highest concern regarding inflation for business owners correlates to wage inflation. 56% have expressed concern that retaining and attracting employees costs them more.

5. 88% of small businesses are confident that their family atmosphere attracts potential hires better than some larger corporations.

6. Currently, the Index indicates the relationship between small businesses and their banks is getting tighter, which Sullivan explains is good. “To see those relationships solid right now is excellent news.”

"When you're able to work with the head of that company, you can see the fruits of your labor more clearly versus if you were employed at a multinational organization." – Tom Sullivan