The most prominent challenge, inflation and price increases, topped the list at 23 percent, followed closely by recruitment and retention concerns at 19 percent, while insufficient capital and cash flow trailed as the third obstacle at 16 percent.
Guidant Financial released its 2024 Small Business Trends study that surveyed over 1,000 business owners nationwide, providing valuable insights into the current state of American small businesses. The study sheds light on challenges, successes, and evolving trends within the small business community. Despite wavering confidence in today’s economy and political uncertainty among nearly half of respondents, an optimistic majority of 77 percent anticipate thriving in the face of economic setbacks and are actively planning for growth in the upcoming year — and an encouraging 73 percent of surveyed business owners reported being happy.
However, the study illuminated significant challenges faced by business owners in 2024. The most prominent challenge, inflation and price increases, topped the list at 23 percent, followed closely by recruitment and retention concerns at 19 percent, while insufficient capital and cash flow trailed as the third obstacle at 16 percent.
Although recruitment and retention continue to be a key challenge, there has been a 63 percent decrease in the number of business owners encountering difficulty this year compared to last year’s study. The survey also revealed a remarkable 29 percent fall in challenges related to attracting applicants or generating interest in the job market. These trends suggest a positive shift toward improved staffing conditions — potentially signaling the end of the great resignation era.
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Guidant’s study further explores political perspectives among small business owners. The survey showed that a significant portion of respondents lean conservative, with 43 percent identifying as Republicans. Nineteen percent identified as Democratic, while only five percent considered themselves Libertarians. A substantial 33 percent of respondents felt unrepresented by any political party, indicating a sustained increase in the number of politically unaffiliated business owners. The report delves deeper into the political inclinations of small business owners, discovering that most plan to vote conservative this upcoming election year.
Over half of small business owners either strongly disliked (37%) or disliked (23%) the Biden-Harris administration’s response to the current economic climate, while only 10 percent approved of the administration’s approach.
Commenting on the findings, Jeremy Ames, CEO, and co-founder of Guidant Financial, said, “Government regulations often burden small businesses with added complexities, which may be contributing to the growing political divide and uncertainty. It’s why we’re working so hard on better ways to ease the pain of paperwork for our small business clients.”
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