March 31, 2023
The measure of small enterprise house owners’ confidence within the US economic system fell this quarter to 60 from a studying of 62.1 within the fourth quarter, based on the US Chamber of Commerce’s Small Enterprise Index launched this week. Fifty-four % of small companies cited inflation as a prime problem.
“This quarter, small companies’ issues over inflation are hovering and their view of the broader economic system is darkening, although they nonetheless report that their companies are in good well being,” mentioned Tom Sullivan, VP of small enterprise coverage on the US Chamber of Commerce. “Small enterprise house owners are pulling again a bit on spending as they see storm clouds within the economic system showing forward.”
The proportion of small enterprise house owners who consider the economic system is in good well being fell to twenty% on this quarter from 27% reported within the fourth quarter. As well as, fewer small companies, 38%, mentioned they plan to extend funding over the following 12 months, down from 47% within the earlier quarter.
Nevertheless, regardless of small enterprise house owners seeing a weak economic system, a majority (63%) mentioned their enterprise is in good well being, and 64% are comfy with their money circulation. Seven in 10 mentioned they’ve retained the identical variety of workers over the previous 12 months, and 19% report growing workers over the identical interval, based on the report.
The survey is a part of a multiyear collaboration by MetLife and the US Chamber of Commerce. The quarterly index is a web-based survey of roughly 750 small enterprise house owners and decision-makers. It was performed between Jan. 16 and Feb. 2.