The net percentage of small-business owners raising selling prices increased by six points to a net 59%, a 42-year record, according to the National Federation of Independent Business’ Small Business Economic Trends report.
“Another overall grim look at the days ahead from the perspective of small-business owners,” Chad Heinrich, NFIB’s Arizona director, said Tuesday. “Price inflation, a lack of willing or qualified workers despite rising wages, and continued problems with supply chains are all issues bound to lead us into a downward spiral for small business financial health.”
The report showed small-business owners expecting better business conditions over the next six months, decreasing one point to a net negative 38%, tied for the 48-year record-low reading. This marks an 18 point decline over the past four months to this indicator’s lowest reading since November 2012.
“As the end of the year nears, the outlook for business conditions is not encouraging to small business owners as lawmakers propose additional mandates and tax increases,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Owners are also pessimistic as many continue managing challenges like rampant inflation and supply chain disruptions that are impacting their businesses right now.”
A net 54% of owners plan to increase prices, a three-point increase from October. According to the report, nearly half of owners polled report job openings they could not fill.
“For many small businesses, the fall holiday season is the time to turn a profit. The current headwinds facing small-business owners this yuletide season may not make for such a story in 2021,” Heinrich said. “Each and every Arizonan has the opportunity to choose to support local small businesses this season and I hope they do.”