Small biz owners worried about inflation but happy to be entrepreneurs
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Small business owners are as preoccupied with stubborn inflation and economic uncertainty as the general public, yet many still embrace entrepreneurship — warts and all.
Why it matters: A slowing economy and stubbornly high prices have exposed a growing divide between Wall Street and Main Street.
- Major benchmarks are close to record highs, yet small business sentiment has been far less buoyant ahead of November's hotly-contested elections.
Driving the news: American Express' latest small biz survey found that Main Street is struggling to navigate multiplying economic headaches, with price hikes and cash flow topping their list of concerns.
- However, a whopping 95% remain "overwhelmingly happy" as business owners, and are in it for the long haul, according to Amex data shared exclusively with Axios.
- About 60% expect their business to be a long-term venture that lasts at least five years, Amex notes. Nearly half see longevity as a long-term objective. Meanwhile, 84% are motivated by personal passion, the data found.
Between the lines: A separate survey from Goldman Sachs, released last week, revealed that small business owners feel as if politicians aren't talking enough about Main Street entrepreneurs.
- According to Goldman, a staggering 81% of 10,000 surveyed cited rising labor costs as having a "significant impact" on their business decisions.
- Over two-thirds also cited insurance and goods costs as an impediment.
Yes, but: Amex's trend data makes clear that small biz owners are still embracing their roles with gusto.
- Gina Taylor Cotter, American Express EVP & GM, Small Business Products & Business Blueprint, tells Axios that despite the pessimism that defines Millennials and Gen Z, younger entrepreneurs are more inclined to strike out on their own — and the omnipresence of technology has made them savvier business people.
What they're saying: "We are seeing a surprising generational shift that I've not seen elsewhere: while Gen Xers and boomers surveyed were most likely to have started their company as a 'second act' in their career, millennials and Gen-Zers are more likely to start their business right out of school," Cotter says.
- "Younger generations are learning from the small businesses online or on their feeds, not just the small businesses in their neighborhood."
