Inflationary Pressures, Higher Energy Costs Squeezing Texas Small Businesses
Texas small business owners say inflation is hurting their ability to hire and retain workers, forcing them to raise prices on consumers; 90% of respondents say inflationary pressures have worsened since January. 74% of respondents across all sectors say rising energy prices are impacting their business, according to a survey from Goldman Sachs 10,000 Small Businesses Voices.
89% of Texas small business owners say broader economic trends, such as inflation, supply chain issues, and workforce challenges, are having a negative impact on their business. Further, nearly three-quarters (74%) of all Texas small business owners surveyed across all sectors say increasing energy costs are having negative impacts on their bottom lines.
The health of the economy is another concern, as 61% of Texas small business owners say the economy has worsened since January 2022—a rate 5% worse than the national average.
And while hiring and retaining workers remains the top challenge cited by Texas small business owners, concern over inflationary pressures has also increased over the last few months; 90% said inflationary pressures have increased since January 2022. Previous worries have not abated. Over that same period, 92% said hiring challenges worsened or stayed the same and 90% said supply chain challenges worsened or stayed the same, a number 10% higher than the national average.