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Between rising food and fuel costs, rising debt levels, and declining savings, people are struggling to see overall economic growth reflected in their bank accounts. A recent survey with CNBC found that “concession” has affected many people, and now that sentiment appears to be resonating with small business owners as well.
According to the latest CNBC|SurveyMonkey Small Business Survey (Q2 2024), small business owners feel little impact from stock market highs and are more concerned about what happens on Wall Street than on Main Street. It shows that they are worried about being left behind by policymakers.
Inflation has become a top concern for small business owners since the beginning of the pandemic. In the first quarter of 2024, small business owners showed signs of cautious optimism that inflation will finally slow. Confidence in the Federal Reserve’s ability to curb inflation rose to 35%, the highest level in two years. However, recent government inflation figures show that prices are once again rising more than expected, and small businesses’ confidence in the Fed has returned to 31%, its lowest level as of the 2023 quarterly survey. .
Stock market gains in 2024 will be enough for investors who benefited from the rise in chip stocks such as Nvidia, whose valuation briefly exceeded $2 trillion, and AMD, whose valuation exceeded $300 billion for the first time. It was a good one. Even the recent downturn in the IPO market is starting to accelerate, with both Reddit’s IPO success and Rubrik signaling growing optimism. However, our research shows that small business owners were not among those who benefited from the recent market windfall.
The majority of small business owners surveyed (64%) said they have not benefited from stock market performance this year. In fact, very few believe that Wall Street has had a positive (17%) or negative (15%) impact on their business. Wall Street isn’t hurting small businesses. It’s just not present in their daily lives.
This CNBC/SurveyMonkey online poll was conducted April 8-12, 2024 among a national sample of 2,130 self-identified small business owners ages 18 and older.
What Democratic and Republican small business owners agree on
Overall, SMEs have little confidence in their current management policies and policy decisions. Almost three-quarters (73%) believe these policies favor large companies rather than small businesses. Small business owners of both parties generally agree on this point, with 79% of Republicans and 71% of Democrats and independent small business owners saying that business policies favor large businesses over small businesses. I agree with that.
Most small business owners (86%) agree that they have little say when it comes to business policy decisions. Again, this sentiment is shared across party lines. 91% of Republican business owners are concerned about not having a say in business policy decisions, as are 82% of Democrats and 88% of independents. This is despite the fact that 99% of all businesses in the United States are small businesses.
In today’s politically polarized environment, small business owners from opposing political parties rarely agree on most things. In our survey, Republican and Democratic small business owners largely disagreed. For example, 64% of Democratic small business owners say the economy is “good or excellent,” while 60% of Republican small business owners say the economy is “bad.” .
The fact that these polarized groups are expressing the same concerns underscores the seriousness of the problem. Lack of voice in policymaking is not just a partisan concern. Small business owners are the foundation of the economy. Understanding priorities and concerns is critical for policymakers and leaders to make informed, data-based decisions that meet the needs of their constituents.
