June Small Business Outlook: Optimism Around Growth Continues

U.S. Chamber of Commerce
June 20, 2024

New data from a Goldman Sachs 10,000 Small Business Voices survey shows that a majority of small business owners believe access to childcare will help alleviate worker shortages that have stifled small business growth for several years. At the same time, small business owners are bullish on the future, but growth plans are constrained by high prices.

Summary: According to poll results from the Goldman Sachs 10,000 Small Business Voices Survey on Child Care Challenges, small business owners believe that solutions to childcare will help solve the worker shortage crisis.

• A majority of small business owners believe that providing solutions for access to childcare will help alleviate worker shortages that have stifled small business growth for several years.
• 35% of small business owners report their employees have cut work hours or dropped out of the workforce due to a lack of affordable access to childcare.
• 38% of small business owners report that lack of affordable childcare choices has had a negative impact on operating or growing their business.
• 62% of small business owners believe that being able to offer a childcare benefit would positively impact the recruitment and retention of employees.

Learn more about this data and explore the entire report, published June 20, 2024.

U.S. Chamber of Commerce
June 11, 2024

The latest data report on small business shows how the headwinds of high interest rates and high prices are stifling plans for growth and expansion. At the same time, small business owners continue to voice confidence in their balance sheets and cash flow.

Summary: The Small Business Optimism Index published by National Federation of Independent Business (NFIB) found that inflation remains front and center for small business and is crimping growth.

• 14% of small business owners reported higher sales in the past 3 months (1 point worse than April), and the percentage expecting higher sales fell 1 point to -13%.
• 20% of small business owners ranked labor quality as their top problem.
• 25% of small businesses raised their prices in May (no change from April), and 28% are planning on raising prices in the next 3 months (up 2 points from April).
• 58% of small business owners reported capital outlays in the last 6 months (up 2 points from April), and 23% are planning capital purchases in the next 3 months (up 1 point from April).
• 7% of small business owners expect better credit conditions in the next 3 months (2 points better).
• 58% of small business owners are not interested in a loan (2 points lower than April), and 31% report borrowing on a regular basis (no change from April).
• 6% of small business owners reported that financing was their top problem in May (the highest percentage in 14 years).
• 4% of small business owners believe the next 3 months are a good time to expand (unchanged from April and down 4 points from January).

Learn more about this data and explore the entire report, published June 11, 2024.

U.S. Chamber of Commerce
June 10, 2024

The latest jobs report from the Bureau of Labor Statistics and NFIBB shows that wage inflation may have peaked. This is good news for small business owners who have been looking to hire and retain good employees. Keeping up with higher employee wages is one of the top reasons for inflationary pressures on Main Street. Any relief bodes well for America’s small business community.

Summary: Has wage inflation peaked? Small business owners certainly hope so, according to the June small business data report from the Bureau of Labor Statics and the NIFBB.

• 42% of small businesses reported job openings they could not fill in May (2 points higher than April and still far above the 49-year average of 23%).
• Of the small businesses hiring, 85% of owners reported few or no qualified job applicants (6 points lower than April).
• 15% of small business owners are planning to create new jobs in the next 3 months (up 3 points from April and the highest level for 2024).
• 37% of businesses raised compensation in May (1 point lower than April), and 18% of small business owners plan on raising compensation in the next 3 months (3 points lower than April and the lowest level in 3 years).
• 37% of small businesses have openings for skilled workers (3 points higher than April), and 14% have openings for unskilled labor (4 points lower than April).
• 54% small businesses in construction industry have job openings they can’t fill.

Learn more about this data and explore the entire report, published June 6, 2024.