Small business owners across the nation are confronting unprecedented challenges and are now speaking out.
High inflation under the Biden-Harris administration is stifling business growth and heightening economic concern among voters, according to several of those most affected, as Fox Business reports.
Business owners report struggling with stagnant growth, increasing costs, and decreased discretionary spending compared to the previous administration. Many have pointed out that the current economic policies are making it difficult for them to remain competitive and profitable in their respective industries.
Inflation is a significant issue for small businesses in the U.S. The rising prices of goods, particularly in niche markets like auto parts, have made it increasingly difficult for these businesses to maintain their profitability. Rafael Arroyo, a small business owner, expressed that during the Trump administration, he was able to expand his business and open new locations. However, the situation has changed dramatically under the Biden-Harris administration.
"I've been stagnant. I've been dealing with fighting these rising costs, having to battle for employee pay and trying to raise the prices so I can keep up," Arroyo says. A Fox News Poll highlights that 66% of voters consider grocery prices a major issue, while 60% say the same for housing costs. This data implies that inflation is not only affecting businesses but also the general population, exacerbating economic anxiety as the election approaches.
Earlier in May, fewer voters had concerns about grocery and housing costs, with 62% and 47% considering them problems, respectively. The spike in these percentages indicates growing unease about the economic future. Pennsylvania has experienced the most significant increase in grocery prices, with an 8.2% rise as reported by Consumer Affairs. This is particularly alarming for business owners who already struggle with slim margins and heightened operating costs.
Another Fox News Poll shows that a 17-point margin of voters found Trump's policies more beneficial than harmful. In contrast, a 24-point margin found Biden's policies on the harmful side. Such statistics underscore the dissatisfaction among many voters who see current policies as detrimental to economic health.
Former President Trump garnered attention by giving $100 to a mother at Sprankle's Market to help with her grocery expenses, highlighting the economic strain on ordinary Americans. This act brought some relief but did not address the systemic issues facing businesses.
Ryan Sprankle, the market's owner, shared how inflation has driven costs up significantly. "Inflation has been through the roof the last three years... But yet discretionary spending amongst our customers... has decreased, causing us to be flat or at times down in sales despite inflation being through the roof." Businesses have had to become hyper-efficient, cutting margins to stay competitive, which has hurt their ability to reinvest. "In all reality, we've been forced to give up margin to be competitive," Sprankle says, "that hurt us because we haven't had the money to reinvest like previously."
Shana Gray, a café owner, was among those forced to close her business due to the prohibitively high costs. "I was forced to close. The weight of the cost of goods. The weight of the economy itself. It's just more or less my customer could not come in to spend residual income," she laments.
Gray also expressed her disappointment with Vice President Kamala Harris' opportunity economy plan. "Those small little economic injections of capital is pointless if you can't get things to balance," she remarked, noting that her customers' inability to spend effectively killed her business. Furthermore, Gray has faced backlash online due to her vocal criticism of the economic situation, adding stress to an already challenging business environment. She says, "It's definitely not looking like she will vote for Vice President Harris in November."
Small business owners like Arroyo have questioned the efficacy of current economic policies and called for more actionable solutions. He states, "I would just say to Harris and the Biden-Harris administration, if you had all these great ideas, why haven't you done it? Republicans are pretty pro-small business, so I'm sure you could get something done if they're actually good ideas. But it looks like she's just waiting to try to get elected."
The sentiment among many small business owners is clear: current policies are squeezing profits and stifling growth, leading to closures and economic hardship. With the election on the horizon, these concerns may significantly influence voter decisions.
