Small businesses are exhibiting their greatest levels of optimism since the Covid 19 outbreak in the spring of 2020. But for all of that, according to a new survey, concerns remain about the pesky presence of post-pandemic inflation.
The survey, officially called the Small Business Index and released by the U.S. Chamber of Commerce, records an overall positive score of 63.1. That figure has been on the upside since the fall of 2022 and is drastically improved over the 39.5 recorded in the immediate spring of 2020 after the pandemic shut done much of the nation.
In surveying the mostly buoyant responses, Tom Sullivan, vice-president of small business policy at the Chamber, remarked: “Small businesses are again showing remarkable resiliency.”
“There has been a strong majority reporting that their business is in good health over the past year,” Sullivan continued in a statement, “and it’s clear many have high expectations for the future.”
Despite those good numbers, however, some 76% of respondents indicated that rising interest rates are making it harder for them to raise capital. Along those same lines, an equally large 73% felt that it has become harder to borrow money due to banks tightening up lines of credit.
Because of higher interest rates, well over 60% of businesses specializing in professional services said they have converted variable rate loans to a fixed rate, followed by around 50% in both the retail and manufacturing sectors.
More than 50% of respondents in the retail and professionals services sector also said they had delayed plans to grow their businesses due to the high rates.
Despite a general wariness regarding those rates, small businesses have nevertheless managed to get the loans they need, with only less than a third of responses in the manufacturing, retail, and professional services sector reporting that they were rejected in applying for a loan.
The Chamber of Commerce survey was done in conjunction with the insurance provider MetLife Incorporated.
Noting the large number of respondents expressing a general optimism in the months ahead, Cynthia Smith, regional business senior vice president at MetLife, remarked: “While the current economic conditions may have stalled their plans to grow, the combination of small business owners’ determination, drive, and positive outlook bodes well for the future.”
By Garry Boulard
