80% of Small Businesses Report Hiring Struggles

Alignable’s July State Of Small Business Report has just been released, based on responses from 5,911 small business owners polled from 7/2/21 to 7/19/21, as well as input from 635,000 businesses over the past 16 months.  Key findings show increased optimism, revenues and customer counts, and a decrease in the negative effects of COVID. While that’s all welcome news, more businesses are struggling with escalating inflation and a growing labor shortage. Here are some highlights: 

The Good News

• 76% of small businesses are fully open: a new 2021 record, up from 68% last month
• Revenue numbers are up by 15 percentage points in July.  Last month, 57% said they only had 50% or less of the monthly revenue they earned prior to COVID. But in July, that number dropped to 42%
• In a related poll, 56% of small business owners said they are more optimistic about their future vs. 21% who were more pessimistic. (23% reported no change in outlook)
• Only 22% report being significantly impacted by COVID in July vs. 30% last month.

 The Not-So-Good News

• Supply Costs Hit A New High: 80% say they’re experiencing higher supply costs than they had prior to COVID. And 27% say the costs have increased more than 25%. Given this scenario, more small businesses than ever fear inflation will hurt their recovery, as many don't feel comfortable raising their prices. 
• 67% of small businesses are still trying to rebound. 
• 50% of all small business owners say it’s more difficult to hire now than it was prior to COVID.
• These industries are hurting the most: 74% of restaurant owners are struggling to hire employees, as well as 66% of small business owners in transportation, 63% in the automotive industry, 62% in manufacturing, 59% in the beauty sector, 56% in construction, and 47% of retailers. 

Read the full report here.

Originally posted on F&I and Showroom