The current economic landscape can make or break small businesses. A recent report illustrates the struggles small business owners face as they navigate inflation, supply chain disruptions, and rising costs, all of which impact everyday consumers.

The Latest Economic Trends for Small Businesses

In June 2026, the National Federation of Independent Business (NFIB) released its Small Business Economic Trends (SBET) report. This report showed a decline in its index, falling 0.6 points to 95.3 in May. This number is still below the 52-year average of 98.0. A significant indicator from the report is the Uncertainty Index, which rose by 3 points to 91, remaining well above its historical average of 68.

These figures are critical as they reflect the challenges that small businesses are facing today. With many business owners seeking solutions, the timing of this report is particularly noteworthy, coming just before a key election. It highlights the need for policies that support, rather than burden, these small enterprises.

Understanding the Concerns of Small Business Owners

Bill Dunkelberg, NFIB’s Chief Economist, provided insights into the report. He noted that while there is some optimism around investments in artificial intelligence, overall sentiment among small business owners is mixed. Many are grappling with significant, unpredictable hikes in fuel prices. This situation makes it harder for them to pass these costs onto customers compared to larger companies, which often have more flexibility.

Inflation continues to be a pressing issue. Eighteen percent of small business owners identified it as their main concern, marking the highest level since December 2024. Furthermore, an increasing number of owners are planning price hikes. The net percentage of owners raising prices rose to 36%, showing that more businesses are feeling pressure to adjust in this challenging environment.

Challenges Ahead for Small Business Investments

The SBET report also highlighted a decrease in planned capital outlays. Only 16% of small business owners intend to invest in their businesses over the next six months. This figure fell by 1 point from April and represents the lowest level since March 2009.

Compounding these issues, a staggering 70% of small business owners reported that supply chain disruptions have affected their operations to some degree. This marks a 6-point increase from the previous month and underscores the ongoing challenges that many face in maintaining reliable operations.

Moreover, the sentiment among small businesses reflects broader economic anxieties that can indirectly affect consumers. When businesses struggle, it can lead to fewer job opportunities, higher prices, and a reduction in local services.

What this means for you

The struggles faced by small businesses have a direct ripple effect on everyday consumers. If small businesses are unable to thrive, communities can lose essential services and jobs. Understanding the implications of rising prices for goods and services can help consumers make more informed choices.

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Source: https://www.nfib.com/news/press-release/small-business-optimism-index-took-a-dip-in-may/