September 2024
Small Business Resilience in a Tumultuous 2024
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By Mary Lau, RAN President/CEO
HE POLITICAL CLIMATE IN 2024 IS SIGNIFICANTLY IMPACTING SMALL business decisions. As the presidential election approaches, small business owners are grappling with various challenges that influence their operations and strategies. Inflation, economic policies, access to credit, advertising costs, and political uncertainty are among the key issues shaping the landscape for small businesses in 2024. First, inflation remains a critical issue. Small business optimism about inflation has declined, with only 24% believing it has peaked, down from 29% in the previous quarter. Furthermore, 75% expect inflation to continue rising, an increase from 69% previously. The Federal Reserve’s hint at an interest rate cut in the third quarter does not seem to assuage these concerns. Moreover, only 31% of small business owners feel confident in the Federal Reserve’s ability to control inflation, mirroring the low approval rating of President Biden’s handling of the presidency, which also
Mary Lau stands at 31%. Second, there is widespread skepticism about current business policies among small business owners. According to CNBC, 75% believe policies favor large companies over small businesses, a sentiment shared across party lines. The ability to obtain credit is a prime example of this issue. Credit is vital for operating a business, especially when quick loans or credit card cash transactions are needed due to large accounts receivable problems. However, many banks are approving fewer loans and credit cards for small business owners. Customers using credit cards
benefit from delayed payments, but the cost of swipe fees poses a real difficulty for merchants. Third, the intense competition for advertising space during election cycles is driving up costs, posing challenges for small businesses with limited marketing budgets. This necessitates more strategic planning and exploration of alternative marketing avenues. Political uncertainty also affects consumer behavior, leading to more cautious spending, as noted in an article from Inc. Magazine. Additionally, while supply chain issues are currently less of a concern, there is Continued on page 2
INSIDE The Imortance of Voice in Small Business in Nevada’s Leislative Process......................................2 The Hidden Costs of PBMs.....................................4 How High Swipe Fees Hurt Retailers...........................5 Organized Retail Crime...........7 Industry News........................11