Some consider small businesses to be the lifeblood of the American economy. On Tuesday, we learned that small business owners are more optimistic about the economy than they have been in years, according to the National Federation of Independent Business.
However, when compared to historical averages, optimism is still down. And that’s the way it is with business these days: some good, some bad.
The hardest part about running a small business today? Inflation.
“We see inflation in everything, right?” said Sheena Eizmendiz, who runs her own small business, The WellBiz, a consulting firm in Miami.
“Our workers’ compensation is just going up right now. They just raised it,” he said. “We’re seeing that increase in health care as well. In general, we’re seeing it everywhere.”
Workers are also getting bigger paychecks. Small businesses may be facing a labor market that is slowing but still tight, said Holly Wade, principal investigator at the NFIB.
“We’re still seeing a lot of business owners saying they’re planning on increasing compensation,” he said. “And then business owners have to try and figure out the best way to absorb those increased costs.”
Bob Kingery has felt that pressure at his Raleigh-based company, Southern Energy Management, which installs solar panels and makes buildings more energy efficient.
“Our team members who are hourly and doing field work for the last three years, we have been very focused on how we are going to increase their wages, so that they can afford to live in the Triangle area of North Carolina or anywhere in North Carolina,” he said.
Kingery is paying his employees more, but he said he hasn’t had trouble hiring overall and hasn’t had to delay any major purchases.
“We’re optimistic. It’s rare, rare, rare to feel that way in the world around us,” Kingery said.
And there were signs in Tuesday’s survey that the economy may not be as bad as some business owners feel.
“The strong indicators are pretty good. And the weak indicators, people’s expectations and their assessment of the situation, have deteriorated significantly,” said Liz Wilke, chief economist at payroll firm Gusto.
He said there was a widening gap between how business owners actually run their businesses and how they felt about the future.
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