Small Business Owners Hopeful in Economy, But See Inflation as a Problem Over Next Two to Five Years

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Apr 10, 2023, 08:38 ET

DALLAS, April 10, 2023 /PRNewswire/ -- 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 of 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.

SOURCE National Write Your Congressman