Rising Prices on Main Street Erode Small Business Optimism

October 9, 2023

Rising Prices on Main Street Erode Small Business Optimism

October 9, 2023

Small business optimism hits a 20-month low at 91.3, with inflation and labor shortage posing significant challenges - NFIB report provides insights into current economic trends.

Small business optimism in the US continues to decline, with the NFIB’s Small Business Optimism Index dropping to 91.3 in August, marking 20 consecutive months below the 49-year average of 98. Inflation remains a top concern for 23% of small business owners, with average selling prices also on the rise, indicating ongoing inflationary pressures.


Bill Dunkelberg, NFIB Chief Economist, noted that issues like inflation and the worker shortage are the primary obstacles for small businesses. Expectations for improved business conditions in the next six months saw a significant drop, reaching a net negative of 37%. Job demand remains strong, as 40% of owners face difficulties in filling positions, with 17% planning to create new jobs in the coming quarter.


Despite challenges, businesses are responding by adjusting pricing, with 27% of owners raising selling prices and 30% planning further price hikes. Labor quality and costs, as well as concerns about profit trends, continue to be significant issues. Borrowing dynamics remain stable, with only 2% of business owners reporting unmet borrowing needs, while 27% had all their credit requirements met. For more information click the link!



https://smallbiztrends.com/2023/09/rising-prices-on-main-street-erode-small-business-optimism.html

May 26, 2026
Section 179 vs Bonus Depreciation: Which Strategy Is Right for Mid-Market Companies?
Nexus tax exposure map showing multi-state risk for growing businesses
May 19, 2026
Nexus tax exposure can be triggered by revenue alone. Learn how multi-state businesses can identify risk, avoid penalties, and strategically manage tax obligations.
Bonus Depreciation 2025 Strategy Guide
May 11, 2026
Bonus depreciation in 2025 requires strategic timing. Learn when to accelerate deductions and when deferring can create greater long-term value for growth companies.
IRS tax debt tool for businesses
April 29, 2026
The IRS’s new tax debt tool signals a shift toward earlier visibility and accountability. Learn what this means for established, multi-entity businesses.
ASC 740 errors don’t just create restatement risk.
By Tim Freese April 7, 2026
Learn how ASC 740 tax provision errors affect financial statements, earnings quality, valuation allowances, and lender confidence.
Engineering Solutions? You May Be Generating Tax Credits.
By Tim Freese March 31, 2026
Learn how manufacturers and SaaS companies can systematically capture R&D tax credits under IRC Section 41 and maximize federal tax savings.
I
By Tim Freese March 24, 2026
Own commercial property? Learn how cost segregation accelerates depreciation, unlocks bonus deductions, and improves cash flow strategy.
By Tim Freese March 17, 2026
Learn how CFOs can strategically manage multi-state tax exposure, economic nexus, apportionment, and payroll risk across jurisdictions.
Exit planning is not triggered by a buyer.
By Tim Freese March 10, 2026
Planning a business exit? Learn how entity structure, QSBS, and deal modeling can determine millions in after-tax proceeds.
By Tim Freese March 3, 2026
Learn how a holding company structure can protect margins, optimize multi-state tax exposure, and strengthen capital strategy for growing businesses.