PROVIDENCE – Concerns over workforce shortages, inflation and supply chain issues have intensified or stayed the same for small-business owners over the past three months, according to a new Goldman Sachs 10,000 Small Businesses Voices survey.
Of the 1,533 Goldman Sachs 10,000 Small Businesses participants who responded to the survey, 89% identified these three issues as taking a toll on their business, with hiring and retaining employees remaining their top concern.
Meanwhile, respondents largely reported concerns with the overall U.S. economy: 78% said the economy has gotten worse in the past three months, and 61% of respondents said the U.S. continues to move in the wrong direction. Additionally, 93% fear that the U.S. will experience a recession in the next 12 months.
To combat these economic pressures, 65% of respondents said they have increased the prices of their goods or services, though just over half said that this price increase amounted to less than 10%.
As a result of price increases, 38% of respondents said their business has experienced a decline in customer demand.
Despite concerns regarding national trends, 65% of respondents said they feel optimistic about their own business’s financial trajectory this year.
But the participants largely indicated that the federal government needs to do more to support small businesses, with 88% of respondents urging Congress to reauthorize the Small Business Administration, which has not occurred in more than 20 years.
Small-business owners from 48 U.S. states and two U.S. territories participated in the survey, which was conducted by Babson College and David Binder Research from June 20-23.
Next week, a cohort of 2,500 business owners, including 40 from Rhode Island, will travel to Washington, D.C., to attend the Goldman Sachs 10,000 Small Businesses Summit, which the bank and financial services company believes will be the largest ever gathering of U.S. small-business owners.
While there, the cohort will meet with more than 400 government officials to discuss ways to reform challenges such as access to capital, child care and government contracting.
One participating business owner from Rhode Island, Christine Paige of Bliss Medical Hair Replacement Center in Providence, said she looks forward to advocating for small businesses during the summit.
“From Newport to Woonsocket, and everywhere in between, small businesses are the economic engines of our state, creating good jobs, providing opportunities for workers, and moving our state forward,” Paige said in a statement. “More than two years since the pandemic brought our economy to a halt, we are still facing unprecedented challenges.”
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
