Save The Backbone Of America: Report Shows Over A Third Of Small Business Are In BIG Trouble

By Ryan Canady | Monday, 28 November 2022 04:30 PM
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Save The Backbone Of America: Report Shows Over A Third Of Small Business Are In BIG Trouble

A new report from Alignable finds that 40% of US small businesses couldn't afford to pay their rent on time or in full for November.

That's the most significant number this year.

The survey found that economic hardship is not shared equally across all industries. Instead, specific industries are facing severe strain, but others still land in a pretty good place. Some of the most brutal hits are the 57% of beauty shops, 45% of gyms, 44% of retail stores, and 44% of restaurants that said they couldn't afford their rent on time or in full this month.

Alignable said the following about its survey results:

"Making matters worse, this occurred during a quarter when more money should be coming in and rent delinquency rates should be decreasing."

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According to this survey, the scary thing is that the number of businesses defaulting on their rent obligations or ending up in financial distress should be decreasing. The economy has somewhat improved in certain respects, but the number of businesses facing this problem continues to grow. This could point to very worrying signs moving forward.

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The Alignable report continued:

"One indicator of the toll inflation is taking on businesses is a steep drop in the percentage of small businesses that are fully recovered, earning as much if not more than they did monthly prior to COVID,"

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Many business owners in the survey cited various reasons for struggling, but 60% of those surveyed stated that inflation was a primary concern. This isn't surprising, given that inflation is currently at 40-year highs.

Michigan suffered the worst number of business owners who could not afford their rent for November. The number of business owners in that state who needed help to come up with the funds they needed to cover their rent stood at 51% at the end of the month. New York wasn't behind at 49%, and Massachusetts came in at third with 46%.

The survey was conducted with 6,326 small businesses spread throughout the country.

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