Insights
- US small business owners remain worried about inflation, with over half citing it as their top concern, as per a survey.
- The small businesses' access to capital has declined, with fewer firms planning to increase investment in the next year.
- However, most businesses are positive about their own cash flow and health, suggesting they are in a holding pattern.
In the first quarter (Q1) of 2023, small business owners in the US remained concerned about inflation, according to the latest survey by Metlife and US Chamber of Commerce. The survey found that 54 per cent of small business owners continue to cite inflation as their top concern, marking the fifth consecutive quarter that inflation has topped the list of challenges.
While perceptions of the national economy have slightly dimmed, most small business owners still feel positive about their own business health and cash flow. The majority (63 per cent) of small business owners report that their business is in good health, which has remained stable since Q2 of last year.
However, over the long term, small businesses’ perceived access to capital has declined significantly. Nearly half (49 per cent) of small business owners say their current access to capital or loans is good, which is markedly lower than it was in Q2 2017 (67 per cent). Fewer small businesses say they plan to increase investment over the next year than did last quarter (38 per cent versus 47 per cent). However, sentiments this quarter look similar to one year ago (40 per cent in Q1 2022), according to the MetLife and US Chamber of Commerce Small Business Index.
US small business owners remain worried about inflation, with over half citing it as their top concern, as per a survey.
The small businesses' access to capital has declined, with fewer firms planning to increase investment in the next year.
However, most businesses are positive about their own cash flow and health, suggesting they are in a holding pattern.
Overall, small business owners appear to be in a holding pattern, as many of their day-to-day operational and future expectations are in line with the previous two quarters. The index score for this quarter is 60, which is a slight dip from last quarter's score of 62.1 and closer to where it was in early 2021.
Fibre2Fashion News Desk (DP)
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