Small and Mid-Sized Businesses Remain Upbeat Despite Inflation Challenges

Small and mid-sized businesses remain optimistic about their own companies despite facing challenges such as persistent inflation and rising costs, according to a recent survey.

The survey found that more than three out of five small companies and 51% of mid-market companies rated the economy as either ‘poor’ or ‘fair’, but at the same time, 51% of small market companies and 73% of mid-market companies rated their own businesses as either ‘good’ or ‘excellent’.

Kristina Talkowski, Nationwide’s senior vice president and head of middle market commercial lines, noted that business owners are more optimistic when it comes to their specific region, industry, or business. She highlighted that despite facing challenges, business owners are proactively taking steps to improve their operational strengths and resiliency.

However, both small and middle-market companies are facing internal challenges such as benefits for workers, optimizing operations, and expenses. Health insurance and voluntary benefits like pet insurance were mentioned as factors in attracting and retaining talent.

The survey also revealed that employees are seeking better compensation and benefits, with a significant percentage of businesses reviewing their commercial insurance policies online or with their agents in the past six months.

Talkowski also highlighted the evolving need and challenge of generative AI in the workforce, emphasizing the importance of having policies in place to govern the use of AI tools to ensure the security of business data and processes.

While most companies have invested in AI, the survey showed that mid-market companies are ‘more likely’ to be investing in the technology today, with 63% of middle-market businesses putting dollars into AI compared to 27% of small businesses.

Overall, despite the challenges faced by small and mid-sized businesses, the survey indicates that business owners are optimistic about their own companies and are taking proactive steps to navigate the current economic landscape.