80% of Small Businesses Report Hiring Struggles
Alignable’s July State Of Small Business Report has just been released, based on responses from 5,911 small business owners polled from 7/2/21 to 7/19/21, as well as input from 635,000 businesses over the past 16 months. Key findings show increased optimism, revenues and customer counts, and a decrease in the negative effects of COVID. While that’s all welcome news, more businesses are struggling with escalating inflation and a growing labor shortage. Here are some highlights:
The Good News
- 76% of small businesses are fully open: a new 2021 record, up from 68% last month
- Revenue numbers are up by 15 percentage points in July. Last month, 57% said they only had 50% or less of the monthly revenue they earned prior to COVID. But in July, that number dropped to 42%
- In a related poll, 56% of small business owners said they are more optimistic about their future vs. 21% who were more pessimistic. (23% reported no change in outlook)
- Only 22% report being significantly impacted by COVID in July vs. 30% last month.
The Not-So-Good News
- Supply Costs Hit A New High: 80% say they’re experiencing higher supply costs than they had prior to COVID. And 27% say the costs have increased more than 25%. Given this scenario, more small businesses than ever fear inflation will hurt their recovery, as many don't feel comfortable raising their prices.
- 67% of small businesses are still trying to rebound.
- 50% of all small business owners say it’s more difficult to hire now than it was prior to COVID.
- These industries are hurting the most: 74% of restaurant owners are struggling to hire employees, as well as 66% of small business owners in transportation, 63% in the automotive industry, 62% in manufacturing, 59% in the beauty sector, 56% in construction, and 47% of retailers.
Read the full report here.
Originally posted on F&I and Showroom