The US Chamber of Commerce, in conjunction with MetLife, released its latest Small Business Index (SBI) for Q1 and it shows rising concerns on Main Street. The SBI is a quarterly survey of small businesses nationwide on numerous topics that have been impacting them during the past few months, including fiscal issues and operational challenges.
Overall, the Small Business Index score fell to Q1 2024 levels at 62.3 from 69.1 for 2024’s final quarter. This score measures the confidence level of Main Street. However, despite the drop, views of the US economy and local economies remained stable, according to the report.
US Chamber of Commerce VP of Small Business Policy Tom Sullivan
Topping the pain points for respondents were revenue and inflation, both of which reached levels last seen in 2021. However, inflation has been the top concern for business owners for the past several years. Other measures that were slightly down from the previous quarter were comfort with cash flow (now 66%, down six points); confidence in business health (63%, down 4 points); and increasing staff (down just two points to 20%). Interestingly, nearly half (49%) of respondents would be more likely to hire an entry-level employee if they have training/certification on how to use artificial intelligence (AI)—a clear indicator of the impact of technology across the small business community.
“The data is clear, confidence is being shaken as small businesses increasingly worry about their revenue while at the same time confronting the possibility that tariffs will raise costs for them and their employees,” said US Chamber of Commerce Vice President of Small Business Policy Tom Sullivan about the report. “But while measures related to revenue and cash flow dipped, other underlying indicators such as hiring plans, investment plans, and overall confidence in the economy remain strong. The prospect of tax and regulatory relief may be buoying optimism amid uncertainty.”
You can read this and previous reports here.
[04.01.25]