Business confidence low – inflation

Almost half of all business owners expect interest rates to increase in the next six months, highlighting mounting economic concerns, according to a recent survey from Nationwide of 800 U.S. business owners. The majority of small business owners (72%) and mid-market business owners (51%) rate the current condition of the U.S. economy overall as 'poor' or 'fair,' with inflation topping their list of concerns at 61%. Following closely behind are worries about the upcoming U.S. presidential election (49%), high interest rates (49%), and supply chain disruptions (40%). Despite these and other economic uncertainties, many U.S. small and middle market business owners have a brighter perspective when considering their own businesses, with 51% of small business owners and 73% of middle-market business owners rating the economic environment for their own business as 'good' or 'excellent.' Employees placing demands on businesses amid economic challenges In addition to macroeconomic concerns, business owners face pressure from workers who are experiencing economic strains and demanding more from their employers. In the last six months, business owners have experienced employees: Asking for better compensation (37% - all owners; small - 34%; mid-market - 39%) Asking for more or better benefits (32% - all owners; small - 25%; mid-market - 40%) Leaving for better paying jobs (28% - all owners; small – 22%; mid-market – 35%) “Business owners have a lot to navigate right now, from macroeconomic anxieties to increasing demands from employees as they manage many of the same challenges. What’s clear is owners aren’t taking it on the chin; rather, they’re rolling up their sleeves to improve the operational strengths of their firms,” said Russ Johnston, president of Business Insurance at Nationwide. “As part of that process, business owners should consult with industry-specific insurance partners to assure their commercial policies and risk mitigation strategies are keeping up with their needs now and in the future.”