Small Businesses Share Concerns, Optimism In 2022 Survey

In New York, 84 percent of respondents in the Goldman Sachs 10,000 Small Businesses Voices survey said they are concerned about the ongoing impacts of COVID-19 and the Omicron variant on their business.

The recent rise in cases of COVID-19 due to the Omicron variant has negatively impacted 80 percent of the small business owners' revenue in New York state, according to the survey, which also found that 86 percent of New York small business owners say broader economic trends such as inflation, supply chain issues and workforce challenges are having a negative impact on their business.

Nationwide, labor shortages were cited as the most significant challenge facing small business owners, with 87 percent of those hiring finding it difficult to recruit qualified candidates for open positions. Hiring and retaining workers is also having a worsening impact on revenue, as a staggering 97 percent of small businesses hiring say labor shortages are impacting their bottom line, reflecting a 17 percent increase from September 2021.

This is true throughout the Capital Region as well, local economic leaders shared.

Rensselaer County Regional Chamber of Commerce board chair Katharine K. Doran said one of the major concerns many small businesses have brought to the chamber is around attracting and retaining their labor force. With a mission to support business members in their prosperity and growth, the chamber has continued to support these needs by bringing together workforce development organizations to make the connection between business, education and workforce partners.

"Our Workforce and Educational Advancement Committee has recently highlighted demand occupations in our video series Connect With Careers that enable young adults to explore the many diverse occupations in our region," she said, "and we continue to focus on workforce development initiatives to support businesses and individuals in this changing competitive marketplace."

In Saratoga County, where December's unemployment rate was at a historic low of 2.2 percent, the issues are the same.

"No doubt local employers are running into substantial challenges with finding people to fill open jobs," Saratoga County Chamber of Commerce president Todd Shimkus said. "Employers in every sector of our economy are being limited in terms of their ability to rebound and grow because of this labor challenge."

Instead of the survey's focus on additional emergency financial assistance for small businesses, Shimkus suggested a few other ways that the federal government could potentially help with this problem.

"We need substantial changes to the work visa programs to allow more people to come to the U.S. to fill these jobs, particularly in the agricultural, construction and hospitality sector. It would help if the federal government would forgive state debts for unemployment so that local employers don't see their unemployment insurance rates skyrocket," he said, adding that locally, the passage of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act would help grow the U.S.-based semiconductor industry and would help everyone in the region.

Local business owner Vicki Spring, president of Spring Electric, Inc. in Poestenkill, participated in the 10,000 Small Businesses Voices survey, and was among the majority of respondents that reported being concerned about the ongoing impacts of COVID-19 and the Omicron variant on their business.

Supply chain delays, increased price of materials and difficulty hiring employees are all ongoing struggles for Spring Electric. Deliveries now take months rather than a week, the cost of electrical wire has tripled and Spring simply cannot fill open positions at the company.

These types of challenges didn't begin immediately with the start of the COVID-19 pandemic, but as it continues almost into a third year, the effects are apparent. "The impact in 2020 wasn't that bad," Spring said, "but as 2021 rolled around, the impact could be seen and felt in the business."

Nevertheless, business owners like Spring are persevering. "We're dealing with it, and we're just moving forward," she said. "That's all we can do – press forward and figure it all out."

Like Spring, more than a third (36 percent) of survey respondents across the country said 2021 was more difficult than 2020.

Yet, 73 percent said they are optimistic about the financial trajectory of their business in 2022.

Pete Bardunias, senior vice president of membership and community advancement at the Capital Region Chamber, believes there are better days ahead for small businesses.

"We have certainly observed a significant impact on business as the Omicron variant spread quickly through our community in the past month or so. Unlike a year ago, this variant seemed to be less severe from a health perspective, however it still impacted sales at a number of area businesses as well as staffing levels during the spike period," he said.

But, Bardunias continued, "We anticipate a relatively quick rebound as the warmer months approach. It is encouraging to see in the Goldman Sachs study that 73 percent of businesses surveyed are optimistic about 2022, and we share that viewpoint."

More information about the Goldman Sachs 10,000 Small Businesses Voices survey and its results can be found online at http://www.gs.com/10ksb-voices-small-businesses-on-the-brink.