EAST PROVIDENCE – Staffing shortage, supply chain obstructions and inflation are top of mind for small-business owners, according to a new survey, and most feel the federal government’s response to these issues is lacking.
The survey, released Monday by the Goldman Sachs 10,000 Small Businesses Voices program, found that nationally, 87% of small-business owners reported difficulty in recruiting qualified candidates; 86% had concerns about ongoing supply chain issues and 84% say inflationary pressures have intensified since September.
Meanwhile, small-business owners overwhelming feel that they haven’t had enough support from the federal government: Just 8% of the 1,466 respondents said the federal government has sufficiently addressed hiring shortages, 9% said the same for supply chain challenges, and 10% for inflation.
East Providence-based food truck business Incred-A-Bowl has felt the impact of these issues locally. And new variants of COVID-19 – particularly the surging omicron strain — continue to add to these difficulties.
“It’s nerve-wracking, because it almost feels like there’s no end,” said co-owner Sterling Spellman. “Every time we think we’re getting underway, things have to be canceled.”
Most respondents around the country, at 79%, joined Spellman in expressing concerns on the business impacts of the omicron variant and the pandemic in general.
At Incred-A-Bowl, various ingredients and materials are either out of stock or have skyrocketed in price: In one instance, the chicken the business typically buys has more than doubled over the course of the pandemic, jumping from $34 to $79 per case.
The food truck has needed to bump up prices on some menu items by about $1 to account for these increased expenses, according to Spellman. In the survey, 68% reported that they had needed to increase prices.
Part of the supply chain issue, according to 66% of respondents, is that suppliers are favoring large businesses due to their order volumes.
Adding to these difficulties, Incred-A-Bowl has needed to cancel event appearances due to understaffing, and job candidates sometimes don’t show up for scheduled interviews.
For most survey respondents, hiring issues have had financial consequences: At 97%, nearly all participants reported that hiring shortages are affecting their bottom line, up 17% from September.
Most participants called for more federal financial support to address their most prevalent issues. At 82%, respondents strongly supported additional emergency financial assistance for small businesses, and 86% said Congress should reauthorize the COVID-Economic Injury Disaster Loan (EIDL) program, which expired at the end of 2021.
Spellman agreed that federal assistance played an important role in keeping businesses afloat during the pandemic and hopes more businesses can take advantage of renewed funding.
“We’re very grateful for the [Paycheck Protection Program] loan and the EIDL loan that came out,” she said. But “the saddest part is that a lot of small businesses weren’t able to take advantage of those for various reasons.”
This issue was especially prevalent for minority-owned businesses, which “have already faced issues with funding” due to red tape and inadequate access to information, Spellman said.
Under current conditions, just 29% of respondents reported that they think the U.S. is moving in the right direction, down 38% since June.
In the Northeast, 39% of small-business owners expressed that the U.S. is on the wrong track, and 63% agreed that the federal government hasn’t done enough to address hiring, supply chain and inflation issues.
Despite these challenges and broad economic anxieties, 73% of small-business owners reported that they feel optimistic about the financial trajectory of their own businesses this year.
Spellman was among those respondents. Incred-A-Bowl is in the process of opening a brick-and-mortar location at 1075 South Broadway in East Providence, where Spellman believes that takeout business will help offset lost revenue from event cancellations. The new location is currently under construction, with a goal date of opening in the spring.
