Small businesses are facing challenges in the current economic environment, according to the latest Small Business Economic Trends report, also known as the Optimism Index, released by the National Federation of Independent Business (NFIB). The report indicated the index has been below its 50-year average for 32 consecutive months, highlighting ongoing concerns in the sector.
Tray Abney, state director for NFIB in Nevada, commented on the situation, stating, “Yes, there are things states can do to ameliorate tax and regulatory headaches troubling small businesses, but right now, more than anything, Congress needs to do one big thing to keep our small business economy from lapsing deeper into the doldrums, and that is pass the Main Street Tax Certainty Act, which will keep the 20% Small Business Deduction from expiring next year. It’s imperative.”
NFIB Chief Economist Bill Dunkelberg shared his insights on the report: “The mood on Main Street worsened in August, despite last month’s gains. Historically high inflation remains the top issue for owners as sales expectations plummet and cost pressures increase. Uncertainty among small business owners continues to rise as expectations for future business conditions worsen.”
Key findings from the report showed negative profit trends, with a net negative 37% in positive reports, the lowest since March 2010. In August, 24% of owners cited inflation as their biggest concern, and those expecting higher sales volumes dropped to a net negative 18%. However, 20% of business owners plan to raise compensation in the coming months.
Last week, NFIB also released a sector-specific report examining the construction, manufacturing, retail, and services industries. A standout statistic from this report noted that 70% of small business owners were impacted by supply chain disruptions to varying degrees.
The SBET report is a recognized metric of the small business economy in the United States, often used by policymakers and economic officials to assess the sector’s health. The typical NFIB member business is small, with sales around $500,000 annually, employing between one and nine people.
For more information on Nevada’s small-business news, visit NFIB’s Nevada page or follow them on social media.
