As retailers were winding down an important shopping weekend, with sales struggling to reach pre-pandemic levels, questions remain about what’s being done to streamline regulatory burdens in the supply chain logjam.
Based on data released last month, small business optimism continues to decline amid inventory concerns, rising costs, and inflation pressure, John Kabateck, California state director with the National Federation of Independent Business (NFIB), told the Northern California Record.
It’s hoped holiday sales will provide an uptick, but long-term prospects remain unsettled.
“Unfortunately, uncertainty still reigns on Main Street right now,” Kabateck said. “What we found in our most recent SBET (Small Business Economic Trends) report is that business owners expecting better business conditions over the next six months fell four points, to a net negative 37 percent.”
Kabateck noted that indicator has declined 17 points over the past three months, to its lowest level since 2012, primarily due to unfilled job openings and supply chain disruptions.
Inflation is exacerbating the difficulties.
“We are hopeful that we will see sales grow in some way, shape or form, but they're still very much struggling,” Kabateck said.
Questions persist about whether declaring a state of emergency for the ports will help businesses trying to navigate evolving regulatory hurdles, Kabateck said, adding that a business coalition has asked for help from the administration and remains committed to constructive action.
The most recent data showed more than 90 cargo ships still waiting off the coast of Los Angeles.
“By removing the unnecessary logjams in our ports and regulatory system, our policymakers can really give small businesses and consumers the holiday shot in the arm they desperately need,” Kabateck said.
The placing of consumer need over politics is key, Kabateck said.
“Many of these laws that our leaders have passed were championed by Labor and lawyers,” Kabateck said. “We have too much at stake right now to continue to heap these onerous, unreasonable rules on small employers.
“The big question will be, do the governor and our leaders in Sacramento have the political will to put the livelihood of Main Street above party politics? This holiday season, we can only hope that our leaders will be Santa Claus and not the Grinch when it comes to small business survival.”