C-Suite Wednesday – Two-Thirds of Small Businesses in Good Health Despite Inflationary Pressures

January 4, 2023

Delaney Sexton
Contributing Editor

C-Suite Wednesday – Two-Thirds of Small Businesses in Good Health Despite Inflationary Pressures

“It’s promising to see small business owners optimistic about the health of their own businesses and comfortable with their cash flow heading into 2023,” says Cynthia Smith, SVP, Regional Business at MetLife. “It is also clear, however, they are still confronting the impacts of a challenging environment including inflation and supply chain disruption as well as a need for continued support from their communities in the face of prolonged uncertainty.”

Here are the facts from the 2022 Q4 Small Business Index report:

• In the last quarter of 2022, about two-thirds of small business owners report that their business is in good health.
• Small businesses with more employees tend to feel more positive about their business’s health. 58% of small businesses with fewer than five employees feel positive about their business’s health while 70% of small businesses with 5 to 19 employees feel positive.
• 67% of small business owners are comfortable with their cash flow.
• Almost half of small businesses are expecting to increase investment in 2023.
• 63% of small businesses expect revenue to increase in the new year.
• More than half of small businesses say that inflation is the biggest challenge for business owners.
• 83% of small business owners say that rising prices are having a significant impact on their business.
• Retail (88%), manufacturing (87%), and professional services (84%) were the industries that reported being affected by rising prices the most.
• 16% say that the rise in interest rates is a top concern for their small business, and 13% report that access to credit or a loan is a top concern.
• 93% of surveyed small business owners engaged with their community in at least one of the following ways:
• 70% of small business owners encouraged employees to shop at local small businesses.
• 66% of small businesses donated to local charities over the last year.
• 64% said they sponsored or donated goods/services to local events.
• 56% offered discounts to specific groups like veterans or teachers.
• Most small businesses (91%) believe that businesses should give back to their local communities.

U.S. Chamber of Commerce MetLife Small Business Index
2022 Q4 Small Business Index Release