Small Business Optimism at Record Lows: How Biden Economy is Struggling to Meet the Challenges

According to a recent survey by the National Federation of Independent Business (NFIB), the small business sector is facing challenges in the Biden economy. Small business optimism hit its lowest levels since March 2012, with inflation, high interest rates, and finding workers identified as the top concerns.

Small business owners are citing inflation as a major issue affecting their businesses, with recent data showing that numbers are moving in the wrong direction. The survey predicts that problems for small businesses will continue to worsen throughout the year. In addition to inflation, the report indicates that small business hiring will decrease in 2024, and sales are expected to be lower. Over 60% of business owners mentioned that they have already or plan to raise prices to counteract these challenges.

Some NFIB members expressed their concerns about the current credit market tightening, making it difficult for smaller companies to secure capital funding. With higher interest rates and increased loan costs, small businesses are facing financial struggles. Financial analyst Steve Beaman suggests that due to credit restrictions imposed by banks, small business owners may need to seek alternative financing options, leading to higher interest rates. Despite the positive economic headlines, NFIB members like Bill Herrle argue that the reality for small businesses is quite different, with members reporting ongoing challenges that were unexpected years after the pandemic.