Latest news with #smallbusinesses


Forbes
2 days ago
- Business
- Forbes
Prospects For Inflation On Main Street
Inflation has fallen dramatically since 2022, from 9% to just under 3%, getting closer to the Fed's target of 2%. It was a tough time for small businesses, plagued by forced business restrictions, supply chain disruptions, shortages of goods, rising labor costs, and an avalanche of new regulations and subsidies. Although the percent of small businesses raising selling prices has declined from its peak in 2022, it remains historically high (Chart 1); the inflation rate continues to stay stubbornly above the Fed's target. Labor costs, the largest operating expense for most small businesses, have remained high but have been trending downward since 2022. However, increased compensation costs have not risen as fast as prices, which is the mechanism for passing those costs on to customers and transmitting inflation. Changes in Price and Labor Compensation. NFIB Small Business Economic Trends. Cost changes in a non-inflationary environment drive price changes. Small businesses rarely find themselves in a monopolistic position except during emergency situations. A significant operating cost for labor-intensive businesses is employee compensation. The correlation between price increases and compensation increases is clearly demonstrated in Chart 1. Small Businesses Raising Wages and Job Openings by Industry. NFIB Small Business Economic Trends. Chart 2 shows the percent of small businesses in each industry group that have recently raised compensation and the percent reporting unfilled job openings. Construction leads with the greatest share of businesses with a job opening (65%). This industry also has the second-highest percent of businesses raising compensation (44%,10 points below finance), which is vital for retaining and attracting more employees. Residential real estate is under pressure, with a shortage of homes to meet demand, particularly at the less expensive end. The manufacturing and transportation industries were next highest on the list to raise compensation. They are also among the most optimistic, however the level of optimism is historically low in the current period. Measures of uncertainty are at historically high levels, as shown in Chart 3. NFIB's Uncertainty Index has averaged 65 since 1973, but it currently stands at 89, after peaking at 110 in October 2024. It is based on the percent of owners who give an 'uncertain' or 'don't know' response to six forward-looking questions. Uncertainty Index. NFIB Small Business Economic Trends. Small business owners in the transportation industry experienced the most uncertainty (due to mandates for electric trucks, fuel costs, etc.), with 31% scoring in the highest levels of uncertainty, 7 points ahead of the next closest industry. The wholesale trades, manufacturing, and construction industries followed. Retail business owners were the least troubled, as consumer spending remains solid. Uncertainty delays decision-making, including the choice 'not to raise prices.' With so many moving pieces, it is hard to solve the puzzle. In 2008, record numbers of small businesses reduced compensation and employment. Compensation increases diminished, and the frequency of price hikes fell dramatically. In recent quarters, this trend has reversed, with wage and price increases trending upward. This will keep pressure on inflation measures, making it hard for regulators to get inflation under control and keep it there.


Times
3 days ago
- Business
- Times
Business is an easy target for tax. Ministers should resist
T ucked away in a devolution bill this month was a provision that has unsettled the commercial property industry. The deputy prime minister, Angela Rayner, set out to ban upward-only rent reviews, a mainstay of property valuations for decades, saying the change would 'make it easier for small businesses and community groups to compete'. Even those who supported it pointed out that high-street retailers and leisure operators face far bigger challenges, many imposed by the government. The sectors, which tend to employ low-paid and part-time workers, have shouldered a disproportionate amount of the £25 billion extra national insurance burden announced in October's budget. Analysis of HM Revenue & Customs figures last week found that payrolled employment in the hospitality industry fell by 83,800 jobs in the nine months after the budget, while employment in retail fell by 45,600. April's steep rise in the minimum wage has also had a big impact. Business rates are another factor. Before the election, Rachel Reeves promised to reform the deeply unpopular tax on property occupancy before replacing it altogether. In fact, October brought tinkering that will result in retail and hospitality tenants paying more by 2026. • Business rates hike would drive up food prices, chancellor told There was a dab of jam tomorrow, in that after that point businesses in those sectors will pay less for small properties. But that will be funded through higher charges on occupants of properties valued at more than £500,000. The property agency Gerald Eve has estimated that more than 16,000 buildings will be hit. They will include 1,800 supermarkets, 860 department stores and 483 warehouses but also hospitals, schools and universities. Our deputy political editor, Harry Yorke, reports today that the retail industry is warning this added strain on big shops could force them to push up food and clothing prices, stoking inflation. Helen Dickinson, chief executive of the British Retail Consortium, says retailers 'are doing everything they can to shield customers from … mounting pressures, but there is only so much they can absorb'. The truth is that retail and hospitality are easy to tax because they have big payrolls and are rooted in the UK. That does not make it right. They have already had to grapple with the shift towards online shopping. They have swallowed plenty of tax medicine. These companies employ the 'working people' Labour wants to protect. Squeezing them may be fiscally expedient but it is shortsighted. Labour's failure to get means-testing of winter fuel payments and cuts to welfare past its backbenchers leaves Reeves with a hole to fill this autumn. The temptation will be to come back for more. The chancellor should be mindful of the pain high-employment sectors have suffered before she raises taxes further. She should also get on with reforming business rates.


The Sun
4 days ago
- Business
- The Sun
All chains are BANNED in our posh English seaside village except for single high street giant – but under a strict rule
A PICTURESQUE seaside spot in Suffolk is championing independent brands and shops in an attempt to save small businesses. Southwold, which has earned itself the nickname Chelsea-On-Sea, has rejected high street giants like Costa Coffee and Burger King from stripping individuality from the town. 3 3 With the backing of local councils and strong community support, the town has resisted the encroachment of corporate franchises in favour of preserving it's small-town character. Waterstones was an exception to the rule and was given the green light to open, under one condition: it changed its name. The store agreed to run its business under the name of the former establishment, Southwold Books'. This commitment is more than aesthetic — it's economic and cultural. By discouraging chain stores from its high street, Southwold has created space for independent shops, cafés, and artisans to thrive. These local enterprises often source goods regionally, invest profits back into the community, and contribute to a slower, more personal style of commerce that's increasingly rare in modern retail environments. Guy Mitchell, Chair of the Southwold & District Chamber of Trade, told East Anglian Daily Times: 'We're very proud that 84 percent of shops in Southwold are independent. "It's very important that local people and visitors … continue to support those traders.' Pete Hart, who owns Chapmans Newsagents, also told the paper: "This town is loved for the way it is and if we are not careful our high street will look like any other and will lose its charm and appeal.' Across the UK, independent and family-run businesses are facing an increasingly steep uphill battle. One of the biggest issues is the soaring cost of doing business. Many small shops are grappling with inflated rents, surging energy bills, and increased supplier costs. Unlike larger retailers, they lack the scale to negotiate better deals or absorb financial shocks. On top of that, business rates remain disproportionately high for small operators, often penalising them for occupying high street locations that are vital for visibility but increasingly unaffordable. The shift in consumer behaviour also poses a significant threat. Online shopping, which boomed during the pandemic, has become the norm for many customers who are drawn to the convenience of internet browsing. James Scott, owner of Prandium Cafe told Suffolk Business: "Running an independent shop in Southwold is extremely hard. "The rental of that property is £2,500 a month. Day visitors don't always understand that overheads are too high and think that local shops are ripping them off.' RETAIL PAIN IN 2025 The British Retail Consortium has predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April. A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024. Three-quarters of companies cited the cost of employing people as their primary financial pressure. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020." 3


Zawya
6 days ago
- Business
- Zawya
Tap‘N'Go from Bank Muscat: Enhanced payment experience
Muscat: As the Khareef season now underway, attracting thousands of visitors to Dhofar, Bank Muscat, the leading financial service provider in the Sultanate of Oman, continues to provide the latest digital solutions to facilitate payment processes. The Bank offers the Tap'N'Go payment service which is a contactless payment service, enabling merchants and business owners, to accept card payments directly via their smartphones. This service is an ideal option for small businesses such as food trucks and stalls, allowing them to receive payments from international visitors quickly and easily, without the need for point-of-sale devices or cash handling. Any Android smart device can accept payments using the Tap'N'Go application, which supports all major cards that comply with Near Field Communication (NFC) technology. The service targets home-based business owners, small retail shop owners, food truck and cafe owners, delivery companies, taxi drivers, startups and other business owners. Customers who are holding a merchant account with Bank Muscat can enjoy a seamless and secure payment experience through Tap'N'Go payment service, especially during the Khareef season. The Tap'N'Go payment service is an important addition to the digital payment options offered by Bank Muscat. This service enhances customer experience, especially during the summer and travel season when visitors need fast and efficient payment solutions. This service will enable merchants to receive payments more efficiently, contributing to the economic activity in Dhofar. The Tap'N'Go payment service is part of a broader range of digital solutions launched by Bank Muscat, including Samsung Pay, Apple Pay and QR code payments, enhancing customer experiences and facilitating daily financial transactions. Bank Muscat is keen to adopt top-notch banking services, enabling customers to complete their transactions safely in no time. The innovative digital solutions are designed to meet customers' needs and fulfill their changing requirements. © Muscat Media Group Provided by SyndiGate Media Inc. (


Bloomberg
7 days ago
- Entertainment
- Bloomberg
Bad Bunny's Real Gift to Puerto Rico Isn't $200 Million
Bad Bunny's sold-out, three-month residency in Puerto Rico began Friday and has placed the island on center stage. Much of the coverage has focused on how the 30 shows will be a financial boon for the island — and with good reason. The concerts are expected to pump nearly $200 million into the local economy. This would be significant anywhere, but it carries even greater weight in Puerto Rico, where 43% of the population lives below the poverty line, according to a 2024 Financial Industry Regulatory Authority report. That's more than double the rate of states with the highest poverty rates in the mainland US. To say that Boricua employees and small businesses — hotels, transportation services and restaurants — are riding the superstar's wave would be an understatement. Even my local café in Old San Juan has a Bad Bunny theme.