Small business owners are only slightly more optimistic than they were this time last year, but business consultant Holly Jackson says under current economic conditions the mom and pop shops are still disadvantaged relative to the big guys. "There ais so much inflation and expenses that people are demanding salary increases and higher pay rates and small business owners aren't able to sustain that as easily as larger corporations."
The top two concerns of small business owners are inflation and the quality of the labor market.
The September NFIB Small Business Optimism Index finds that the percentage of small-business owners expecting things to improve by June has dropped six points from August to a net negative 43%, 18 points better than last June's reading of 61%. The index remains at recession levels.
The NFIB Small Business Optimism Index decreased half of a point in September to 90.8, marking its 21st consecutive month below the 49-year average of 98.
About 23% of owners say inflation is their single biggest problems are operating their business, the same as last month, tied with labor quality.
Inflation and tight labor markets have remained the chief concerns among small-business owners over the past two years, but they are also concerned about sagging sales.
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