Small Businesses Grapple with Uncertainty Amid Economic Shifts
Many small businesses are facing tough decisions as they prepare to increase prices and delay growth initiatives. This reaction comes following a survey conducted by Small Business for America’s Future, which highlights the concerns of small business owners across the nation.
The survey revealed that nearly 75% of participants are experiencing a sense of “whiplash” due to the Trump administration’s frequently changing tariff policies. These businesses are struggling with increased costs and unpredictable U.S. trade regulations.
Gabe Hagen, the owner of Brick Road Coffee in Tempe, shares the anxiety felt by many. His second location, initiated before the recent presidential election, now teeters on the brink due to economic uncertainty. “I’m a little worried I might be opening a location in what could be a recession,” Hagen expressed. “So, like, I don’t know what — that whiplash and that back and forth, I just don’t know what’s going on. And it’s making it really hard to make these decisions.”
With a reliance on imported tea and coffee, Hagen is particularly impacted by the turbulent trade environment. He notes that while his business is heavily affected, the problem is widespread. “Those little changes, when we don’t have the big corporate buying power like these chains would, really do impact,” Hagen remarked. “When a box of cups goes from $80 a box to $120 a box, more than likely I’m cutting it out of my salary.”
As Hagen navigates these challenges, he faces the difficult choice between cutting costs or increasing prices to sustain operations. Customers are becoming increasingly aware of the market volatility. “I have to forecast what I expect to spend on cups a year out so that way I can figure out, ‘What do I need to price my drinks at so I can actually make enough to cover payroll, to cover my staff, to keep people employed?’” Hagen explained. “Small businesses like mine, we employ almost half of the U.S. economy.”
Despite the hurdles, Hagen remains hopeful, drawing strength from the local community which provides essential support as small businesses navigate through economic turbulence.
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