Small businesses facing struggles show renewed optimism

Small businesses in the U.S. face tough times, but there are signs of improving confidence. A recent closure of the historic Hotel Saxonburg impacted about 50 employees. Despite its storied past, the closure did not attract national media attention. This reflects a broader trend, as small businesses are struggling under economic pressures. The Small Business Administration reports that over 60 percent of U.S. businesses are small. Many Americans historically worked for smaller companies, but this has shifted in recent years. Now, just 53 percent of people work for businesses with 500 or more employees, a noticeable change from before 2020. An example of this struggle is Ferri’s, a local grocery store that closed after 70 years, partly due to loss of business from a pharmacy that operated in the same space. With competition from larger stores like Target and Walmart, many small businesses find it hard to survive. Jeff Hastings, an industry expert, pointed out that since big-box stores emerged in the 1960s, many small shops have closed. The effects are seen across various sectors, including groceries, restaurants, and local service providers. Despite these challenges, there is hope for small businesses. Recent surveys show a rise in optimism among small business owners, boosted by growth in construction, manufacturing, and retail. Many experts believe that this renewed confidence could signal a turnaround for small businesses in the near future.