Washington, D.C. (July 14, 2022)—Today, the Job Creators Network Foundation (JCNF) released its June Small Business IQ Poll of 500 small business owners. The Small Business Intelligence Quotient (SBIQ), an index tracking overall small business sentiment about the economy, fell by more than a point compared to the previous month to 52.7. The reading is a record low for the indicator, which has declined every month since March.
Additionally, inflation remains the dominant concern for small business owners as budgets are squeezed by rising prices for input materials and a slowdown of consumer spending. In fact, the level of unease among small businesses regarding inflation has hit a new high with 46 percent of respondents saying it’s their first or second biggest concern. At the beginning of the year, 40 percent noted it as a major problem.
Other key takeaways include:
- Sixty-four percent of small business owners think the direction of the economy is worse. In the Midwest, that number jumps to 74 percent.
- Seventy-four percent of small businesses say they have or will raise prices. Of those who are raising prices, three quarters say it is/or will be “a lot” or “significant.”
- Eighty percent of small business owners would like to increase domestic gas and oil production to reduce dependency on foreign oil.
- Supply chain issues are worse by region (but still bad all over). 38 percent of small business owners in the East say that supply chain problems are having a negative impact, while 63 percent in the Midwest, and 61 percent in the South are affected negatively.
Elaine Parker, President of the Job Creators Network Foundation, released the following statement:
“As small businesses endure the summer heat, they are also navigating a minefield of rising prices, supply chain disruptions, and the threat of higher taxes. And these problems don’t seem to be going away anytime soon as the Biden administration continues to play the blame game, rather than tackling the problems head on. Small businesses are the canaries in the economic coal mine and they’re struggling to survive. The Biden administration and its allies in Congress don’t seem to get that.”