A new survey by the National Federation of Independent Business (NFIB) shows an improved outlook in several categories, but there are still many challenges to coming back from the sudden economic impact of COVID-19 shutdowns.
“The Small Business Optimism Index is increasing marginally from April to May, and we are cautiously optimistic,” John Kabateck, NFIB California state director, told the Northern California Record. “For small business owners, there’s still a bit of a mixed bag for Main Street. As we look at small business optimism right now, we find we’re close to seeing ice thaw more and more, but we’re not there yet.”
While eight of the 10 Index components improved in May compared to April, the NFIB Uncertainty Index rose by seven points to 82.
“It still appears small business owners are taking a slow-to-go approach, especially in California,” Kabateck said. “Most mom-and-pops are desperate to get the lights on and get customers walking through the door. It’s the apprehension about COVID-19 mixed with recent devastation that many incurred in the civil unrest that has caused the train to move even more slowly.”
There is more optimism but there’s also been a bump in uncertainty.
“Hopefully things will get better as we start to reopen, but they still feel there will be hurdles looking ahead,” Kabateck said.
“Given this mixed-bag diagnosis that we read here in California, we are urging policymakers here to do the right things to help jump start businesses, not make it more burdensome for them to reopen,” Kabateck said.
“Not only are there recent policies that seek to expand paid family leave and sick leave, but the very burdensome workers’ comp order that the governor issued recently as well. And then are also new laws, notably AB 5, the independent contractor law, and the onerous California Consumer Privacy Act that takes effect July 1,” Kabateck said.
No one wants to return to the devastation of the multi-month shutdown, he said.
“It’s a stew of good and bad, hope and uncertainty, but we are overwhelmed by the courage and determination we see from small businesses to not give up, and to not give up on the people that work for them,” Kabateck said. “We have been buoyed by their efforts to keep their extended workplace family in place.”