NFIB Survey Looks at How COVID Continues to Impact Small Businesses

The National Federation of Independent Business (NFIB) recently released the results of a survey finding that inflation and staffing shortages stemming from the pandemic era are still challenges for small business owners.

The poll was conducted among a random selection of small business owners who are NFIB members. Questions tackled topics like sales levels, the economy, supply chain disruptions, staffing shortages, interest rates, paid leave, and online sales.

NFIB Research Center Executive Director Holly Wade commented, “The small business economy is recovering from the pandemic, but they continue to manage other economic headwinds. With historic inflation, ongoing staffing shortages, and supply chain disruptions, owners are working hard to get back to pre-crisis economic levels.”

Here’s how respondents answered with regard to sales levels and economic activity in their local communities:

According to the NFIB’s report, nearly half (46 percent) of small business owners have increased their average selling prices because of supply shortages and inventory inflation. Here’s how respondents answered questions regarding supply chain disruptions:

The survey found that 20 percent of small business employers were experiencing a significant staffing shortage, while another 25 percent claimed they were experiencing a moderate shortage. Seven percent of business owners said they increased their selling prices to offset the higher compensation needed because of staffing shortages.

Seventy-two percent of respondents said they increased wages as a way to attract applicants for open positions, while 29 percent increased paid time off for the same reason. Sixteen percent offered or enhanced hiring bonuses, and 21 percent offered or enhanced referral bonuses. Another 21 percent offered or enhanced health insurance benefits.

Businesses are also making operational adjustments to make up for staffing shortages. A third of those experiencing a shortage said they’re offering more hours to part-time employees, while half are offering overtime to full-timers. Seventy-eight percent of business owners said they are working more hours, and 34 percent of owners have gone so far as to adjust business hours. Thirty-two percent implemented new technology to enhance productivity, while 29 percent reduced the variety of goods and services sold.

The survey also found that higher interest rates have caused a third of the respondents to say that consumer spending has slowed. Twenty-one percent said business financing payments are more expensive. Twenty percent of those impacted by the higher rates said these higher rates are having a significant impact on their business.

Twenty-three percent of respondents said they offer paid family leave, with 69 percent of them offering one to two weeks, and 20 percent offering three to four weeks. Five percent offer five to eight weeks, and three percent offer more than eight weeks. Fifty-one percent of respondents offer paid sick leave.

Seventy-seven percent of small business owners who responded to the survey said they don’t sell their products or services online. Of those who do sell online, 28 percent report that their online sales are one to 25 percent higher than pre-COVID levels. Fourteen percent reported that online sales are 26-50 percent higher, and 17 percent said they are 51-75 percent higher. A whopping 40 percent said that online sales were greater than 75 percent higher.

The effects of the pandemic are clearly still being felt by small businesses, but many are adapting and learning new ways to boost sales and operational efficiency, despite the lingering setbacks.