Small business confidence has reached its highest level since Joe Biden took office, despite the financial aftershocks of 2023 and lingering concerns surrounding inflation, according to results from the latest CNBC|SurveyMonkey Small Business Survey.
The Small Business Confidence Index increased to a score of 47 out of 100, up one point from last quarter’s survey and the highest since Q4 2020. Overall, 28% of small business owners believe the current state of the economy is “excellent” or “good,” up from 23% the previous quarter. Additionally, 35% small business express confidence in the Federal Reserve’s ability to control inflation, the highest it’s been over the last two years.
“The Small Business Confidence Index offers a crucial look at a community vital to our economic health,” said Lara Belonogoff, Senior Director of Brand Management and Research at SurveyMonkey. “These findings paint a nuanced portrait that includes increasing optimism about the economy and political direction of the country coupled with salient concerns about the impact of inflation and minimum wage increases to small businesses. Understanding how this population thinks and feels is key to understanding the heart of the American economy — and is especially important to keep an eye on as election season unfolds.”
Top Small Business Challenges
Despite positive sentiment, the survey outline top small business challenges and concerns, with inflation ranking at the top (31%). Other challenges include:
- Consumer demand (13%);
- Interest rates (12%);
- Labor shortage (11%); and
- Supply chain disruptions (9%).
