NFIB's Wade speaks on CNBC and Bloomberg Markets about headwinds facing small business owners in 2024
As 2023 draws to a close, NFIB Research Center Executive Director Holly Wade shares some of the challenges impacting small business owners across the country and provides a 2024 outlook for Main Street. Mr. Wade appeared on CNBC's Small Business Playbook and Bloomberg Markets to discuss insights from the recent Small Business Economic Trends Survey and his stock predictions for 2024.
“Economic conditions continue to put pressure on small businesses,” Wade said. “Uncertainty about what happens next is a concern for small and medium-sized businesses. We're certainly in a position to continue making adjustments, depending on what happens.”
Speaking about the Small Business Handbook, Wade continued that despite all the economic turmoil, small businesses still have business opportunities. As savings increase, small businesses are starting to consider whether their owners' ideas will work.
“It's interesting to see that with all the headwinds and challenges, we're seeing a huge increase in small business formation,” Wade added. “We have also seen an increase in store closures, which is not surprising. We expect similar levels to continue in the future, but we will probably see some leveling off in 2024. This is a trend.”
Mr. Wade joined Bloomberg Markets to discuss NFIB's November Small Business Economic Trends Survey and the challenges impacting small business owners nationwide. She shares insights into how inflationary pressures, high interest rates, and the labor market are impacting small businesses.
“While we see some relief on the inflation front in this last report, labor shortages and inflationary pressures are still areas of concern… What was a bit of a surprise to us is that we are planning to increase remuneration. “Companies increased by 6 percentage points.” …It's a bit of a bumpy road when you look at which industries are most affected by inflation, job openings and sales. ”
Mr. Wade also discusses financing issues for small and medium-sized businesses that need to absorb or pass on higher financing costs.
“It’s frustrating. [for owners]. Small business owners often use credit cards for purchases and therefore have to pay higher financing costs. Loans are more expensive. However, when looking at capital expenditures, 61% of respondents said they had made capital expenditures in the past six months. And this is the highest rating since February 2020…Financing is only an issue that contributes to the ability to control the cost of products and services, but it does not seem to be a particular impediment when it comes to capital expenditures. I don't see it on the small business side. ”
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