FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
SMALL BUSINESS OWNERS’ CONCERNS WITH
INFLATION AND LACK OF WORKERS HIT RECORD LOW
BY NANCY DAHLBERG
Small businesses are gloomy about their future,
with an index of future expectations plunging
to a 48-year low. The top concerns: inflation
and worker shortages.
The National Federation of Independent Business
optimism index stood at 93.2 in April. The
net share of owners expecting better business
conditions in the next six months eased one point
to a record low. Five of the 10 components that
make up the small business sentiment gauge fell,
as fewer owners said now was a good time to
expand and fewer plan to boost inventories.
About 32% of respondents said inflation is still
their biggest operating challenge, up slightly
from March and the highest since the fourth
quarter of 1980. That share has risen in six of
the last seven months, NFIB data show. Monthly
surveys began in 1986.
According to the survey, more owners expected
business conditions to worsen over the
next six months. Still, the share of owners raising
average selling prices eased slightly from March’s
record high.
Labor quality was the second-biggest problem
and planned compensation changes are
still elevated.
“Small business owners are struggling to deal
with inflation pressures,” Bill Dunkelberg, NFIB’s
chief economist, stated. “The labor supply is not
responding strongly to small businesses’ high
wage offers and the impact of inflation has significantly
disrupted business operations.”
Small businesses – nationally and locally – have
had difficulty filling vacancies and don’t always
have the same resources as large firms to attract
new talent. While large businesses posted solid
hiring gains in April, those with fewer than 50 employees
saw a 120,000 drop in payrolls, the worst
in two years, ADP Research Institute data showed.
“If the pandemic was not enough, now small
business owners and operators are dealing with
inflation, supply chain and workforce issues,” said
Frank Fink, business consultant with the Florida
SBDC at Indian River State College. “The good
news is small business owners do not have to
navigate this challenging marketplace alone.”
To Fink’s point, the Treasure Coast is home to
multiple business assistance programs including
the Florida SBDC at Indian River State College,
which provides no-cost business consulting.
From in-depth financial review to strategic planning
sessions or one-on-one discussions with
business owners to simply discuss and generate
ideas in addressing current market challenges,
the SBDC and its credentialed consultants are
ready to meet.
For more information on scheduling a meeting
with the SBDC, please email Katie Muldoon
at FSBDC@IRSC.edu or call 772.336.6285.
16 TCBusiness.com
Throughout his 48-year career in finance,
Frank Fink has served in numerous financial
and operations management positions. He
advises clients on best practices for financial,
supply chain controls and contracts.
As a certified profit mastery facilitator, Fink
leads clients through the intensive 16-hour
Small Business Development Center’s financial
training program. He holds degrees and
certifications from Indian River Community
College, Barry and Villanova universities.
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