It's Small Business Season

The National Federation of Independent Business (NFIB) released its monthly Small Business Optimism Index this past week. Small business owners are slowly regaining confidence, but with an uncertain holiday season ahead, there’s a degree of trepidation.

“With the election over, small business owners will begin to feel less uncertain about future business conditions,” said NFIB Chief Economist Bill Dunkelberg. “Although optimism is on the rise on Main Street, small business owners are still facing unprecedented economic adversity. Low sales, unfilled job openings and ongoing inflationary pressures continue to challenge our Main Streets, but owners remain hopeful as they head toward the holiday season.”

Economic conditions have been sketchy for some time, as uncertainty among small business owners reached a 50-year high in September. The Uncertainty Index rose 11 points to 103, the highest reading ever recorded. In the October report, 23% of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), which was unchanged from September and remained the top issue.

Among owners reporting lower profits, 39% blamed weaker sales, 16% noted the rise in the cost of materials, 12% pointed to labor costs and 7% cited lower selling prices.

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. Survey respondents are randomly drawn from NFIB’s membership. The report is released on the second Tuesday of each month.

In October, a net negative 20% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down three points from September and the lowest reading since July 2020.

It wasn’t all bad news however, as the net percent of owners expecting higher real sales volumes rose five points to a net negative 4% (seasonally adjusted), the highest reading of this year.

On Election Day, Americans voted to hand all the keys to the Republican party – rejecting the policies of the Biden Administration over the past four years. The economy was reportedly one of the biggest factors in that decision, according to initial post-election reports.

For at least the next two years, conservative policies are expected to advance much more easily, with a Republican president and Republican majorities in both the U.S. House and Senate.

Yes, we’ve elected new leadership, but I’m not naive enough to think that the economy will immediately improve as a result. In fact, I argue that local businesses need us now to help reverse the trend.

The impact of supporting local businesses is larger than you might think, and it’s all about the Hamiltons, if you will. Consider this: If every family spent just one $10 bill, which bears the image of Alexander Hamilton, per month at a local business, over $9.3 billion would be returned to our US economy. That’s not even one meal’s worth of spending a month.

That is just the beginning. For every $100 spent at local businesses, $67 stays in the local economy. According to the U.S. Small Business Administration, small businesses create two-thirds of net new jobs and account for 40% of the nation’s economic output.

A local business posted the following on Facebook the day after the election, offering a glimpse at owner sentiment heading into the holiday season.

“It is clear Americans all over the map have been facing immense challenges. However, with elections over, it is essential that you find time over the next few weeks to support your local economy by going out and spending money in your community. Many businesses are struggling to stay open and have been hanging on by narrow margins. Your support is vital to their survival. Your actions have a significant impact, and where you choose to spend your hard earned money matters.”

As I’ve written about before, your local newspaper is one of those businesses, and we are so appreciative of all the support we receive from our readers, advertisers and customers. Every visit and dollar spent makes an impact.

I came across a meme as I was writing this: “Big box stores don’t love you like small business owners do.” It’s absolutely true. Yes, it may be scary to see big retail and restaurant chains closing locations by the hundreds, but it worries me more to see small businesses disappear from our small towns. As doors close, so do the opportunities available right here at home.

It’s Small Business Season. Join us in celebrating and supporting the small, independently-owned businesses that make our economic engine run.

Throughout the next several weeks, we’ll be focusing space in both newspapers on a variety of ways readers can support local businesses this holiday season. We’re starting with a special Holiday Fare page in the Nov. 25 edition of the Independent, in which each staff member is sharing what they are bringing to Thanksgiving dinner. We’re focusing on food available right here in Foster County, whether it’s made from scratch at home using ingredients from the local grocery or purchased from a local business.

Several businesses in both communities will be open for Small Business Saturday, offering yet another chance for residents to show their support for local.

The week of December 2, known as Winterfest in New Rockford and Christmas Around the Town in Carrington, our pages of both the Independent and the Transcript will be filled with local shopping content.

In the remaining weeks leading up to Christmas, there will be more opportunities to support local businesses as you check off items on your Christmas list as you prepare your mantels and meals for holiday celebrations.

The message is simple. If you want to make sure a local business survives, the time to come out and support it is now. Don’t wait until next month or next year to stop in, do it today.