Small Business Owners Hopeful in Economy, But See Inflation as a Problem Over Next Two to Five Years
Published Wednesday, April 5, 2023
DALLAS – April 5, 2023 – National Write Your
Congressman (NWYC), an organization that gives small
businesses a voice in government, released its Q1 2023 Index which found an overall
increase from last quarter in small business owners’ hope, satisfaction with
government action, and trust with Members of Congress.
Small business owners shared small signs of hope in
the economy, with 66 percent of small business owners believing the U.S. is
currently in a recession, a 15 percent decrease from Q4 2022, when it was at
its highest at 78 percent.
Small business owners also shared concerns about
the United States’ current inflation problems, with 83 percent saying they
believe the problems will not ease for another two to five years. Last quarter
only 33 percent of business owners saw inflation easing in two to three years,
the majority saw inflation as easing in six months to a year.
“While business owners are more hopeful following the
mid-term elections and entering into 2023, there are still more than half who
believe we are in a recession and believe inflation is a problem, and likely
not to be resolved soon,” said Randy Ford, President and COO of National Write
Your Congressman. “With interest rates rising, bank failures, and uncertain
economic times, our members have never been more motivated to take action and
reach out to their Member of Congress to voice their opinions.”
More than a quarter of small businesses are
growing, and out of the businesses growing, owners attribute their success to
the renewed interest and demand in their industry, and to changes implemented
in their business to better restructure and focus following the pandemic.
Business owners’ top concern in the first quarter
of 2023 is hiring qualified workers, followed by keeping up with rising costs
of employees’ pay/salary, inflation, ensuring Congress is implementing policies
that positively impact their business, and regulations.
The Index also found small business owners taking
action amid rising interest rates, including: increasing prices of services or
goods provided (70 percent), not taking investment opportunities for themselves
personally and/or their business (37 percent), delaying growth for their
business including foregoing purchasing equipment, purchasing real estate, and reducing
their budget (36 percent). Thirty two
percent of business owners say that the cost of borrowing money has negatively
affected their business.
Congressional Sentiment
Fifty-six percent of small business owners said
they are confident their U.S. Congressional Members know their opinions on important
issues. Forty percent believe their own elected U.S. Congressional Members act
according to their constituents' input. Forty-three percent of small business
owners surveyed said they trust the elected U.S. Congressional Members who
represent them.
NWYC’s
Quarterly Index Score increased overall in hope, satisfaction, and trust in
Members of Congress from 2.28 in Q4 2022 to 2.44 in Q1 2023.
NWYC provides members with non-partisan information
and research along with the tools they can use to connect with their
representatives in Washington and advocate for the policies and actions that
will help their small businesses be successful for their families, their
employees, and their communities.
Methodology
NWYC collected data using an online survey
administered from March 1 to March 20, 2023. A total of 956 respondents participated. Respondents represent 46 of the 50 states in
the U.S. Sixty percent of business owners surveyed employ one to nine employees
and 36 percent employ 10-99 employees.
About National Write Your Congressman
National Write Your Congressman (NWYC) is an
organization that gives small businesses a voice in American government. As the
nation’s largest, privately held, nonpartisan membership organization made up
of small businesses, NWYC is dedicated to the delivery of constituent opinions
to representatives in Washington. For more than 60 years, NWYC has provided
small business owners and operators the tools necessary to connect with members
of Congress and a platform to let their collective voice be heard. NWYC’s team
of experts provides unbiased, nonpartisan information and research on top
issues and pending legislation relevant to small business owners today. NWYC
presents both sides of the issue so that members can form an educated opinion
and let their opinions be heard.
