VIDEO: NFIB’s Holly Wade Discusses Small Business Outlook on Yahoo! Finance
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VIDEO: NFIB’s Holly Wade Discusses Small Business Outlook on Yahoo! Finance

Wade shares how inflationary pressures and job quality are affecting small business optimism

WASHINGTON, DC (July 10, 2024)NFIB Research Center Executive Director Holly Wade joined Brad Smith Yahoo finance to discuss the challenges Main Street faces in the face of historic adversity facing small businesses.

Wade analyzes data from NFIB June SBET survey highlights impact of inflationary pressures and ongoing labour shortages on major businesses

Watch the interview with Wade here:

“We saw some improvement in our main indicator of the small business sector, our Optimism Index, and that was a great sign. We were up one point from the previous month, and that’s the highest reading of the year. As you mentioned, (small business owners) are still pessimistic, overall… And right now, inflation and job quality are still the two major issues that they’re facing, and that puts a lot of pressure on small business owners to try to retain their current employees, attract candidates for those open positions, and figure out how to absorb the price increases that they’re still facing.”

“One of the areas that is causing the most inflationary pressure right now (is) wages. (Owners) are still planning to increase wages, we saw them increase last month, so they are still trying to find a way to absorb those prices. First, it hits their profits – so it’s absorbed into the owners’ net pay – until they figure out a way to manage the rising costs in their business, which is certainly difficult when you’re competing with other businesses, big and small.

“Consumers are tired of price increases. They’re hesitant to go out and cover those costs, and they want to be more strategic in their purchases. (One of the big challenges for owners is) making tough decisions about which products or services to raise to stay competitive and keep customers in their business. It takes a lot of thought, time and consideration on the part of the owner or employee to figure out that mix.”