Episode 129 Impact of 2022 Elections on Small Businesses

In this episode, John talks about the midterm elections held on November 8th, 2022, in the United States and the link between the elections, inflation, and small businesses. He discusses the impact of the midterm elections on small businesses and what small business owners can expect to happen going forward.

Listen to this episode to learn more:

[00:00] - Intro

[01:24] - How the midterm elections affect your business

[02:45] - Surveys on small business owners regarding their key issues for the election

[04:46] - Inflation is more of an umbrella issue than one specific problem

[05:34] - Supply chain challenges for small businesses

[08:28] - The recent rise in inflation is considered a supply chain problem

[11:31] - Small business owners are optimistic about their businesses

[12:50] - Minority small business owners face challenges in accessing capital

[15:00] - Inflation has a huge impact on everything

[17:23] - Wrap-up

KEY TAKEAWAYS:

• An overwhelming 83% of small business owners surveyed said that they were concerned that their customers might turn to larger companies, given their ability to better withstand inflationary pressures and potentially offer more competitive pricing.

~ Survey by Goldman Sachs

• While revenue for small businesses nearly doubled over the last year, these same small businesses' profits simultaneously shrunk by 4% as inflation ballooned operating costs and cut into profit margins.

~Kabbage

• Small business owners were relatively bearish on the overall economy, with 67% of respondents naming a recession as a top concern for the year to come. They were also highly optimistic about the outlook for their businesses, with relatively the same number of respondents expecting an increase in revenue and over half actively planning to expand their business more than a quarter.
• 29% of female business owners do not think they will ever have equal access to capital. 40% of black business owners and 27% of Hispanic Latino business owners said the same thing. 
• Minority business owners reported more challenges accessing capital for their businesses than the national average, with 46% of black and Hispanic-Latino business owners reporting that they had personally faced those challenges. 
• Black business owners were the most likely to say they were concerned about credit availability.

~National Economic Outlook Survey of Small Business Owners by Bank of America 

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EPISODE CREDITS

Intro music provided by Tony Palacios - https://www.instagram.com/tonytonedog/  

Outro music provided by Jeff Scheetz - https://jeffscheetz.com/