Goldman Sachs released survey data that found that 52% of surveyed small business owners say that their profitability “has not met expectations. Even while an overwhelming 79% have increased prices compared to last year.”
“Small businesses are the backbone of America. Yet, as we enter this holiday season, we are finding it harder than ever to succeed,” said Janice Jucker, president and Co-Owner Three Brothers Bakery and member of Goldman Sachs 10,000 Small Businesses Voices National Leadership Council. “As our economy teeters on the brink of a recession, it’s more important than ever that Washington provide small businesses with the resources we need not just to get by, but to get ahead.”
The survey found that “40% said that demand has decreased compared to last year, with 33% saying it has stayed the same.”
They also said that larger businesses are better able to handle the pain of inflation.
According to the survey, “84% of those surveyed believe bigger retailers have a competitive advantage this holiday season due to their ability to better withstand inflationary pressures and offer lower prices.”
The survey comes as the latest federal inflation data shows that prices continued to rise in November, though at a lower rate than the rapid pace of the last two years. Price increases vary widely, with certain wholesale prices for goods like vegetables soaring by 38.1%.
The poll surveyed 331 small businesses.
“Small business owners across America are doing more with less this holiday season,” added Joe Wall, national director of Goldman Sachs 10,000 Small Businesses Voices. “It’s critical that Washington meet their needs, and we are committed to ensuring that the voices of small business owners are heard at the highest levels of our government.”