(The Center Square) – Nearly half of American small business owners say they are at risk of closing down this fall, according to new survey data.
The small business network Alignable released the survey, which found that “47% of small business owners … say their businesses are at risk of closing by fall 2022, unless economic conditions improve significantly.”
“That’s up 12 percentage points from last summer, when only 35% were concerned about economic issues forcing them to shut down,” Alignable said. “And SMBs in key industries face even bigger problems: 59% of retailers are at risk, along with 52% in construction, 51% in the automotive sector, and 50% of restaurant owners.”
Those tough economic conditions include soaring inflation. The U.S. Bureau of Labor Statistics released inflation data last week showing consumer prices rose 9.1% in the previous 12 months, the highest in more than four decades, and the BLS Producer Price Index rose 11.3%, nearly the highest ever recorded.
Forced pandemic-era economic shutdowns also crushed many businesses that have yet to bounce back.
“Supporting these unfortunate trends, the total percentage of SMBs reporting that they’ve fully recovered has dropped 7 percentage points since last summer,” Alignable said. “In the Summer of ’21, 33% were fully recovered. But now, that number has declined to a new low: just 26%.”
Prices also hit record highs for regular and diesel gas in June before dipping back down. The current prices, though, still remain much higher than the same time last year.
Amid the economic difficulties, some states are struggling more than others, with more business owners reporting they risk shutting down this fall.
“Looking at different states and provinces, small businesses in CO (54%), MI (52%), OH (51%), PA (51%), and Texas (51%) are struggling the most,” Alignable said.
Two other recent surveys have also raised the alarm about small businesses owners’ sentiments about the economy, as The Center Square previously reported. In June, Alignable released a survey showing that 35% of U.S. small business owners “could not pay their rent in full or on time in June.”
“Most small business owners attribute this worsening situation to record-breaking inflation, which includes escalating gas, labor, and supply costs,” Alignable said. “Simply put, there’s less money available to pay the rent.
“Even more alarming, 63% of transportation SMBs couldn’t afford June rent, up 41% from May,” Alignable added. “It’s no shock to learn that 76% of this group said gas prices have had a ‘very significant’ negative effect on their businesses.”
Another poll released in late June, this one from the Small Business and Entrepreneurship Council, showed that 88% of small businesses are concerned a recession is around the corner.
“There’s little breathing room for our nation’s small business owners and their employees,” SBE Council president and CEO Karen Kerrigan said. “They’ve gone from one set of economic challenges to the next over the past couple of years, and now they are vastly cutting back on spending and investment, which will have a harmful effect across the economy.”
Just what did you expect to happen when you put Bernie’s communist collective of private enterprise destroyers in charge of a government sworn to make all puppets like Joe slaves of the state who becomes the owner and controller of all private enterprise where if you don’t have 666 tattooed on your forehead you are not allowed to do business. Self-governing people who own Small business and people with earned private property are the greatest defined enemy of the socialist state and threat to their existence. Drive up the cost to transport their goods and services, or lock them down long enough under false COVID scares, and soon you control whom they view as the enemy, withering on the vine with no energy to resist, and source of income to survive. The evil genius who thought up COVID had it all thought out well in advance.
IMO this is mostly because the BIG BOX stores, are dem supporters, while most small businesses are generally right leaning..
I own a small business. Paper supplies (paper towels, tp, trash can liners) are going up on a weekly basis and my customers don’t understand why we raise the price every 3 weeks. Many have gone to the bigger vendors to save a couple of dollars. I can’t get parts to repair vacuum cleaners and sewing machines from our vendors. I’ve had to resort to buying retail from other vac and sew shops. Business is down for the house/office cleaning businesses. People can’t afford the luxury, the cleaning companies are not buying our cleaning supplies, and we’ve lost business. Don’t know what to do.
If you can, think of shutting up shop, and retiring…