According to a September survey by the National Federation of Independent Business—the Chamber of Commerce of mid to small sized businesses in America—small business uncertainty is at an all-time record high. I can believe it and have heard this many times.
It would be a mistake to attribute this uncertainty to a case of pre-election jitters, also: the feeling, and fear, of many small business owners is palpable. And sometimes even explicit
In fact, during the past several months we have seen businesses around the state post on Facebook their pleas for help in order to keep their businesses alive. In a passionate, yet dignified post, one business owner noted that never in ten years had they seen such a drop off and lull in, not only her business, but with other businesses in the town where she lives.
Inflation remained the top operating problem small business owners cited in the NFIB survey, as prices continue to surge and customers are scrambling to find better deals and lower prices. Plus, small business owners are also facing the increasing market pressures of growing wages to maintain their labor force.
As one business owner I saw on one of the cable channels succinctly put it, “You can only raise your prices so high before you price yourself out of the market.”
All businesses, small and large, must have stability to function. They’re not getting that at the present time. I’ve been a business owner for 36 years and the only time I’ve seen such a precarious economic atmosphere was during the 2008-09 financial crisis.
I’m not saying that’s where we are headed—yet. However, I do hear and see a lot of my business owner peers worried and wondering how they can get through the next few months, let only the next few years.
If you do well in your business, you’re then taxed more. If you provide health insurance to your employees, your insurance costs are soaring. Regulations are increasing. Material costs are going through the roof. Competition is fierce. And, meanwhile, all Hollywood movies and TV shows—with hardly any exception—always cast the villain as the easy-targeted and stereotypical “greedy businessman.”
The NFIB’s Optimism Index did tick up by 0.3 points to 91.5 last month. But, it also marked the 33rd consecutive month the reading fell below the 50-year average of 98. Another bad tell-tale sign.
Business planning used to be a long-term proposition. These days, it’s more like day-to-day for too many of us.
We hope you enjoy this edition of the Mississippi Business Journal and, as always, we appreciate your comments.
