September 15, 2021

Delaney Sexton
Contributing Editor

C-Suite Wednesday – Small Business Owners Lack Confidence in Future Business Conditions

“As the economy moves into the fourth quarter, small business owners are losing confidence in the strength of future business conditions,” says NFIB Chief Economist Bill Dunkelberg. The NFIB recently released their August Small Business Economic Trends Report.

These are the statistics:

· The NFIB Small Business Optimism Index slightly increased to 100.1 in August.
· The NFIB Uncertainty Index was 69 in August. The index decreased seven points to its lowest level since January 2016.
· A net -28% of small business owners expect better business conditions within the next 6 months, its lowest reading since January 2013.

Credit Market
· 2% of small business owners reported that all their borrowing needs were not satisfied, but 22% of owners reported that all their credit needs were met.
· 63% of borrowers said they are not interested in a loan, up two points since July.
· Only 1% of business owners reported that financing as their top business problem.
· Increasing one point since July, a net 2% of small business owners paid a higher rate on their most recent loan. The average rate paid on a short maturity loan was 4.6%.
· 22% of all owners borrow on a regular basis.

Profit Trends
· The frequency of reports of higher profit trends decreased two points to a net -15% in August.
· 60% of owners reporting higher profits credited sales volumes, and 10% of these owners cited higher prices.
· Of the small business owners reporting lower profits, 34% blamed the rise in the cost of materials. 27% of the owners blamed lower sales.

NFIB August Small Business Economic Trends Report