PHILADELPHIA, PA – Goldman Sachs 10,000 Small Businesses Voices this week released new survey data about the state of small business across the U.S. and in Pennsylvania.
Despite ongoing economic challenges facing employers across the country, the survey shows that small businesses are planning to grow in 2023 and are driving economic confidence.
In 2023, 92% of small Pennsylvania business owners expect to create new jobs (54%) or maintain the same number of jobs (38%) compared to 89% of small business owners nationally who expect to create or maintain jobs in the next year. The survey also found that only 6% of Pennsylvania small businesses, and 9% of small businesses nationally, have laid off employees in the last three months.
“If you don’t support your local businesses, your local economy cannot survive,” said Vincent Finazzo, CEO and Founder of Riverwards Produce, which has two locations in Philadelphia. “There are countless economic pressures that come each and every single day while being a small business owner, especially in a big city. Continued inflation, financial hardship, economic uncertainty and insecurity, as well as climate changes and uncertainty, all play a major role in our society and in our business, and bring with them workforce challenges and obstacles. I am optimistic about the future, but changes need to be made at every level.”
Contrary to reports that inflation has been easing its grip on the economy – 62% of Pennsylvania small business owners and 72% nationally are finding that inflationary pressures have worsened in recent months.
When asked about the most significant problem facing small businesses, the most common response was difficulty finding and retaining qualified employees. For the 39% of Pennsylvania small businesses and 35% of small business owners nationally who cited this as the primary challenge, the most significant reason was the lack of qualified workers.
When asked about the current state of government programs designed to help small businesses, the surveyed owners were largely united in their assessments:
- 96% nationally and 95% in Pennsylvania believe the federal government should be updating programs and services to better reflect the realities and needs of small businesses operating in a modern economy.
- 70% nationally and 63% in Pennsylvania give the federal government a “C, D or F grade” for the effectiveness of the programs, services and tax credits available to small businesses.
- 85% nationally and 86% in Pennsylvania give the federal government a “C, D or F grade” for the job it does communicating about programs, services and tax credits available to small businesses.
Goldman Sachs 10,000 Businesses Voices is urging Congress to take bipartisan action to modernize the programs, services and tax credits available to small businesses by reauthorizing the Small Business Administration (SBA) for the first time in 23 years. 90% of small business owners surveyed in Pennsylvania, along with 94% nationally, say it is important for Congress to comprehensively modernize the SBA.
“The results of our survey illuminate the very real economic challenges small business owners across the U.S. continue to face as they emerge from the pandemic crisis,” said Joe Wall, National Director of Goldman Sachs 10,000 Small Businesses Voices. “Congress can help by joining in a bipartisan effort to reauthorize the Small Business Administration to modernize government programs that help these business owners navigate our new normal.”
This data is based on a survey of 1,838 Goldman Sachs 10,000 Small Businesses participants, including 110 Pennsylvania small business owners, conducted by Babson College and David Binder Research from January 23 – January 26, 2023. The survey included small business owners from 48 U.S. states.
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