On the latest episode of the U.S. Chamber Small Business Update, anchor Shyann Malone is joined by Tom Sullivan. Sullivan, the Vice President of Small Business Policy at the U.S. Chamber of Commerce, shares insights into the economic outlook for 2024 and the significance of Black History Month for small businesses.

Key Takeaways 

1. According to the Chamber of Commerce, Black History Month allows the organization to highlight the most prestigious Black-owned businesses. For example, America’s Top Small Business Award winner for this past year was Lillian Werbin, a Black-owned entrepreneur for Elderly Instrument small business, and Black History Month is an outstanding opportunity to share her story on a world stage through the platform of the U.S. Chamber of Commerce. “We hope to share Werbin’s story and inspire other black entrepreneurs to be as successful as she has been,” says Sullivan. 

2. Another great example is Tj and Hadley Douglas; they also won the Top Small Business Award a few years ago. They used the $25,000 reward money to launch The Progressive Wine Company, dedicated to bringing the wineries industry to the Black-owned business world.

3. Throughout the month, the Chamber emphasizes the success stories of Black-owned businesses. The organization has also partnered with larger vendors like Intuit’s Quickbooks, which recently launched its own black-owned business study. The study revealed that support for Black-owned businesses increased by 56% in 2023 compared to after the George Floyd murder. 

4. Moreover, 96% of Black business owners supported a Black-owned business at least once in the last year. According to Sullivan, there is still a significant gap between minorities’ support for Black-owned businesses and their support for themselves. Patronizing a Black-owned business not only means diminishing your odds of getting a great product or service but also prohibiting Black owners from overcoming the stigma that they don’t believe in themselves.

5. With the survey the Chamber conducts every quarter with MetLife, it found 64% of small businesses say the overall health of their business is very or somewhat good with their current cash flow. 

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

The U.S. Chamber’s State of American Business is an annual event that recognizes American businesses. In a recent episode of the U.S. Chamber Small Business Update, Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce, shared highlights from the event.

Sullivan explained that the annual event provides an opportunity for the U.S. Chamber to lay out its expectations for the year ahead. The Chamber represents approximately three million businesses in the U.S., most of which are small businesses. During the event, Suzanne Clark, the CEO of the Chamber, presented the Chamber’s agenda.

Key Takeaways:

1. According to Sullivan, this year’s Chamber of Commerce event differed from previous ones. Clark, a former business owner, was introduced by Lilian Werbin, the winner of America’s Top Small Business and the owner of Elderly Instruments. In Clark’s address, she painted an optimistic picture for businesses, focusing on the defense of free enterprise.

2. For the first time since Sullivan has been with the Chamber, Clark’s speech did not include policy prescriptions. Instead, she made two primary points. The first point emphasized small businesses’ importance and contribution to communities and the economy. Clark acknowledged the negative news but highlighted how businesses are essential as a nation prioritizing pro-business.

3. The second point of Clark’s speech was the defense of free enterprise. Clark discussed what’s at stake for individual creativity and entrepreneurship in creating commerce, which is the system’s fabric.

4. Sullivan believes the Chamber’s event left people excited and motivated because they heard from a passionate former business owner who resonated with them about business. Clark ended the event, quoting Bono, “Entrepreneurship is the surest way of development.”

5. The event was primarily virtual, but local chambers will further spread the message of pro-business empowerment. Moving forward, Sullivan believes we’ll see increased attention or continued attention to cash flow. “We might also notice more discussions around how SMBs can grow without adding employees because most businesses are optimistic about their cash flow.”

6. 2023 saw the largest new business starts ever- with 5.5 million new business applications submitted. Sullivan says, “Though we tend to focus on fixing things that are wrong, there’s a lot to be optimistic about.”

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

Small business confidence is a key indicator of economic performance, as it provides a frontline view of the market otherwise invisible to the naked eye. Recently, the U.S. Chamber of Commerce and MetLife released their Q4 Small Business Index, which revealed a sudden drop in optimism among entrepreneurs after a comparatively strong summer. To learn about the factors behind this shift and other details in the report, host Jim Fitzpatrick is once again joined by Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, for another Small Business Update.

Key Takeaways

1. Sullivan notes that there is a disconnect between how small business owners view their own prospects and how they view the economy’s prospects. While entrepreneurs tended to feel more optimistic about their company’s future in the Chamber of Commerce’s research, their expectations for the economy were largely pessimistic.

2. Sullivan notes that the eight-point dip in small business confidence between Q3 and Q4 was likely the result of economic pessimism taking a toll on the overall hopes of entrepreneurs.

3. Even though small business confidence trended lower in Q4, Sullivan notes that many entrepreneurs are expecting to earn more revenue next year and are planning to hire more employees as a result.

4. Unfortunately, higher revenues do not always translate to higher profits, especially during periods of high inflation. Q4 was the sixth quarter in a row that inflation ranked as the top factor impacting small business confidence.

5. Sullivan notes that small business owners are actually in a better position to recruit talented professionals than larger companies. This is because smaller organizations have the ability to provide more flexible work schedules and job environments, factors that can be especially attractive to younger professionals.

6. Several holiday shopping trends emerged in the small business confidence report. Although foot traffic during the holidays declined, online shopping grew dramatically, reaching the highest level in the history of the U.S. Sullivan urges entrepreneurs to visit the Chamber of Commerce’s digital platform CO to gain in-depth knowledge of online sales strategy.

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

Small Business Saturday is a day to honor and promote small businesses, along with everything they provide for their communities. As the day draws near, Tom Sullivan, the Vice President of Small Business Policy at the U.S. Chamber of Commerce, joins us on the latest episode of the U.S. Chamber of Commerce Small Business Update to share more insights. 

Back in November of 2010, American Express launched a campaign targeted towards supporting local small businesses through its Small Business Saturday campaign. The company intended to encourage consumers to spend locally during the holidays while providing small businesses exposure.

Key Takeaways:

1. Aside from American Express’s original marketing aim, the primary goal of Small Business Saturday today is to support the community. “Small business keeps the country going,” claims Sullivan.

2. On Small Business Saturday, when you spend $1 at a small business, around $0.48 stays in the community, compared to the $0.14 regularly. 

3. The U.S. Chamber of Commerce’s quarterly survey on small firms indicates that, overall, things are going well for their financial sheets and internal operations. However, a recent Quickbooks survey found that 65% of small businesses depend on the holidays to enter the profit column for that year when reviewing sales in light of the national economy. 

4. Sullivan asserts, “What makes small businesses unique ultimately falls down to the interactions between community members and small businesses.”  For instance, small business owners can help spread the support by shopping at another small business between getting up and going to bed. After all, they are shoppers too. 

5. The chamber has a webpage specifically designed to help address the frequently asked questions while aiming to maximize sales. CO is the chamber’s digital platform; log onto GrowWithCo.com for more information.

6. Regarding Small Business Saturday this year, Sullivan begs customers to be patient. “We continue to face work shortages despite the chamber’s anticipation of a three to four-percent growth in in-person sales.”

7. For customers seeking to support small firms online, like with Shopify, Amazon, and other sales platforms, designated areas will be offered to buy products from small businesses.

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

As you know, small businesses are the backbone of our nation’s economy. For these small enterprises, delayed payments can cause financial consequences. The U.S. Chamber of Commerce has adopted the ‘Prompt Pay Pledge‘ (PPP) to help with this problem. Joining us on today’s episode of the U.S. Chamber of Commerce Update is Tom Sullivan, the Vice President of Small Business Policy at the U.S. Chamber of Commerce, to discuss the newly launched initiative. 

Small suppliers are an essential component of the economic environment in our nation and require access to funding to expand. Under the Prompt Pay Pledge, businesses are urged to provide private financing options or promise to pay their small business suppliers more quickly. 

Key Takeaways:

1. The PPP initiative’s primary goal is to lessen the consequences and trickle-down impact that come with promptly paying a vendor or supplier. 

2. The Chamber is enthusiastic about the project for two reasons: first, it is a business-led effort managed by businesses; second, it has the potential to benefit both large and small enterprises. 

3. The program is based on the idea that larger companies require and desire reliable vendors/suppliers; therefore, according to Sullivan, “it’s in their best interest to generate better-performing vendors, which the PPP aids SMBs in.” 

4. On the Chamber’s website, SMBs can find tools, advice, and resources to help them encourage some of their larger clients to make payments more quickly. 

5. The latest MetLife survey revealed the highest confidence in SMB operations since the pandemic was surged by their own cash flow and success.

6. For more information regarding the Prompt Pay Pledge, head to the U.S. Chamber of Commerce website and apply today.

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

Although U.S. inflation has picked up, small business owners feel better about their business health, according to data from Q3 MetLife and the U.S. Chamber Small Business Index. Joining us on today’s episode of the U.S. Chamber of Commerce Small Business Update is Tom Sullivan, the Vice President of Small Business Policy at the U.S. Chamber, to provide us with more insight into the data. 

Each quarter, 750 distinct online interviews with small business owners and operators are used to generate the MetLife & U.S. Chamber of Commerce Small Business Index. The Index provides a thorough quantitative assessment of the small business industry and investigates the viewpoints of small business owners on current business and economic trends.

Key Takeaways:

1. Owners may not be entirely happy about inflation, but they are currently excited about the cash flow, inventory, and operations.

2. According to the Index, 52% of small businesses say their concerns about inflation are the top challenge, near record highs and consistent across the region for the sixth consecutive quarter.

3. the industry has seen a startup surge since the pandemic started. Sullivan believes this is due to two reasons:

• The government’s stimulus checks enabled entrepreneurs to jump into the world of becoming their own boss.
• Additionally, COIVD offered more obstacles quickly, unlike ever before. However, it did equip entrepreneurs with the ability to solve problems.

4. The current Index is at its highest since COIVD, but the highest concern regarding inflation for business owners correlates to wage inflation. 56% have expressed concern that retaining and attracting employees costs them more.

5. 88% of small businesses are confident that their family atmosphere attracts potential hires better than some larger corporations.

6. Currently, the Index indicates the relationship between small businesses and their banks is getting tighter, which Sullivan explains is good. “To see those relationships solid right now is excellent news.”

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

The federal reserve raised interest rates to their highest level in 22 years, putting additional strains on business owners nationwide. On today’s episode of U.S. Chamber of Commerce Small Business Update, Tom Sullivan, the Vice President of Small Business Policy at the U.S. Chamber of Commerce, brings us up to speed and tells us how this will impact small businesses. 

Many people might be surprised to learn that small businesses are doing remarkably well in the current economy despite rising interest rates, inflation, and a lack of qualified workers. Small businesses are facing the headwinds of inflation, which has been the top concern for SMBs over the past six consecutive quarters. Still, they remain optimistic. While Wall Street has reflected that inflation is dropping, we haven’t seen the same figures on main street, although “it’s coming,” notes Sullivan. 

The latest Small Business Survey shows that 47% of small businesses plan on adding employees later this year. This reveals an increase of ten points higher than at the beginning of the year and is at its highest level in the past five years.

Hiring challenges:

Although the industry requires additional workers, finding those qualified and motivated individuals on Main Street “remains difficult,” says Sullivan. Even if hiring presents difficulties, SMBs are committed to expanding their employees over the coming years. However, businesses remain hesitant around the “What if’s” that include: “What if we can’t get more employees? What if interest rates stay high indefinitely, and what if the onslaught of regulations from Washington makes it harder for businesses to succeed.” Furthermore, Sullivan adds, “My daily struggle at work is tackling those what if’s.”

Even though supply chains are improving, the uncertainty of operating conditions may result in other union strikes or threats, like the frequent ones we have seen. Sullivan emphasizes, “Every business, regardless of size, relies on certainty. And here at the Commerce, we’re calling on Congress to guarantee that.” 

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

For small business owners, it is crucial to stay informed on the latest economic trends impacting their industries. Unfortunately, it can be challenging to digest the information when things like inflation, taxes and the stock market change daily. In this Small Business Update, host Jim Fitzpatrick is joined by Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, to discuss the latest data on how entrepreneurs are navigating the post-pandemic landscape.

While it may seem that the economy is more unstable than ever, the latest data indicates that American companies are starting to feel a sense of normalcy return. The U.S. Chamber of Commerce conducts a monthly survey polling millions of small businesses across the country to identify the anxieties and trends affecting them most. “We actually had one of the highest readings ever,” Sullivan remarks. “71% [of small business owners] say that they’re expecting increased revenues in this upcoming year, which is real positive news for us.”

However, this is not to say that American entrepreneurs are completely at ease. Although most small business owners are optimistic about the economy and are even looking forward to hiring more workers in the coming months, COVID-related factors, such as inflation, remain significant roadblocks. In fact, inflation has topped the list of concerns for six consecutive quarters, according to the U.S. Chamber of Commerce’s research. “While the good news is that the stock market is responding to lower national inflation, the unfortunate truth is that small businesses haven’t necessarily felt that relief yet,” Sullivan warns.

The second most significant concern is the labor shortage, which has hit small businesses especially hard in 2023. While larger companies have natural advantages when it comes to attracting talent, entrepreneurs are hindered by the massive workload that comes with owning a company. “If they can’t find workers, it means they’ve gotta do it themselves,” comments Sullivan. “We see that type of pressure kind of bleeding down these small businesses day in and day out.”

Interest rates have also become an issue affecting entrepreneurs. In an effort to tame inflation, the Federal Reserve has persistently hiked rates throughout 2023, making it more difficult and expensive to access critical funds. Although the bank is currently weighing its next move, anxieties have flared amongst the small business community. “We asked small businesses how they’re feeling about interest rates,” Sullivan notes. “We saw a jump…of ten percentage points of small businesses saying that rising interest rates are pinching their growth plans.” An additional 50% of respondents, he adds, told the U.S. Chamber of Commerce that they were forced to put their growth plans on hold.

Loan access has also tightened since the start of the year, a trend that gained steam after the failure of Silicon Valley Bank in March. However, Sullivan notes that small business owners have escaped from the banking crisis relatively unscathed since credit demand happened to sink just as availability began to fall. Although this means that entrepreneurs could be seriously affected once that demand returns, there are other elements protecting companies from the worst outcomes. “The good news though is that over the past four years with PPP, pandemic recovery and then some bank failures, you see small businesses with better relationships and prioritizing relationships with their community banks and other lends at an all-time high,” he explains. “And so that actually bodes well for small businesses that are looking for capital to grow.”

The U.S. Chamber of Commerce is working hard to ensure that small businesses have the support they need for success, regardless of whether the economy thrives or stumbles. One area the administration is looking to reform is immigration in the hopes of solving the country’s labor shortage. Sullivan notes that even if every unemployed person in the U.S. found a job, there would still be millions of positions left open. Opening pathways to legal citizenship would thus help plug the gaps. “There are dozens of tweaks that can be made to the existing immigration system that will help solve the problem of worker shortages without upsetting the entire apple cart of immigration debate which can be so controversial,” he notes.

The Chamber is also working with Congress to keep an important COVID-era tax policy in place. Sullivan notes that the 20% tax deduction helped many small businesses and entrepreneurs stay afloat during the pandemic and provides an extra layer of stability as the economy works to regain its full health. Bipartisan support has already begun to coalesce around the idea. “Republicans and Democrats are actually coming together on issues like keeping the 20% deduction, that so many small businesses have taken advantage of, permanent,” remarks Sullivan. “We’re pretty optimistic that…we’ll see the permanency in place before it expires at the end of 2024.”

To learn more about the U.S. Chamber of Commerce and the work it does to support small businesses, visit its website here.

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

The time has come for another Small Business Update from the U.S. Chamber of Commerce here on ASBN. Tom Sullivan, vice president of small business policy, joins Jim Fitzpatrick to discuss the latest political developments and government programs affecting American entrepreneurs.

The economy remains a chief concern for small business owners as they look for signs of recovery and stability. For those hoping for good news, Sullivan has an important development to share. In June, the Federal Reserve announced it would be putting interest rate hikes on hold after observing slight improvements in inflation. Although there is no guarantee that rates will come down in the near future, entrepreneurs who have struggled to access capital since the COVID pandemic can breathe “a sigh of relief.”

However, while this is a positive indication that the Fed’s disinflationary measures are becoming less necessary, Sullivan urges caution, noting that it may take some time for small business owners to feel the effects. Until creditors know for certain the direction the U.S. economy is taking, entrepreneurs are likely to find loan access restricted. “We would like to think that the concern over inflation will eventually go down too,” he explains. “We’re just not there yet.”

This caveat does not mean that entrepreneurs should feel any less confident about their future in the U.S. economy. In fact, Sullivan notes that more small businesses were opened between 2020 and 2023 than at any period in the past. The growth of the sector is helping to solve another issue plaguing the U.S. economy: employment.

“The job market right now is extremely competitive,” comments Sullivan, especially between small businesses. Because of the challenges companies are facing in their efforts to fill positions, he explains that the Chamber of Commerce is working closely with Congress on strategies to bring more job-seekers to the market. Sullivan notes the federal government is currently considering ways to open the doors for more legal immigration, a move which he notes would stimulate wage growth in the U.S.

Presently, the Chamber of Commerce is working on three projects to help entrepreneurs find success. First, Sullivan notes that the organization’s Prompt Pay Pledge is attracting more signatures. The program pushes larger companies to commit to paying their small business vendors and suppliers in a timely manner. Second, the Chamber is urging entrepreneurs to apply for America’s Top Small Business Award, recognizing the best small business in the U.S. with a $25,000 grant, before the approaching deadline. Participants have until Friday, July 7 to submit their nominations. Finally, Sullivan explains that the Chamber is successfully rallying support for the Prove It Act, a bill authored by Iowa Senator Joni Ernst limiting the federal government’s power to regulate without first considering the needs of small businesses. He notes that the policy will “make sure that [the law’s] approach, when it comes to the federal government’s interaction with small business, makes sense.”

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan. 

Government programs are an essential resource for small business owners looking for greater success. Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, joins host Jim Fitzpatrick on The Small Business Show to offer an exclusive update on the chamber’s initiatives and how it is connecting entrepreneurs with exciting new opportunities.

The chamber represents more than 3 million companies in the U.S., over 90% of which are small businesses. “Our position allows us to convene larger businesses and smaller businesses together,” Sullivan states. “So we really try to focus on those issues and initiatives that help the entire business ecosystem.” Ensuring all entrepreneurs have a voice is the department’s primary goal.

Earlier this month, the chamber celebrated National Small Business Week in partnership with the Small Business Administration, recognizing successful entrepreneurs for their innovation and community support. During this week, Sullivan notes that the Prompt Play Pledge program was launched to reward larger companies for paying their smaller suppliers faster. “Really a very simple commitment which would make an incredible difference,” he remarks, “a win-win situation.” Not only do participating enterprises help lessen the economic pressures on entrepreneurs, but they also become a much more attractive client to potential partners.

This initiative is especially timely, given the economy’s current uncertainty. Not only has a banking crisis made it more difficult for small businesses to obtain credit, but inflation also remains a top concern for owners and consumers alike. “When your sales revenues are good…but they’re not outpacing inflation, we’ve gotta look for other ways to free up capital,” explains Sullivan. The Prompt Play Pledge initiative provides a path toward lightening the burden entrepreneurs face in the post-pandemic market.

To make the pledge, all corporations must do is sign an online form, after which their commitment will be published. Since its launch, the program has received applicants from major corporations such as JPMorgan Chase, Accion Opportunity Fund and Intuit, a trend that Sullivan notes has convinced a wider audience of company leaders to rethink their policies. Entrepreneurs have also discovered new resources and guidance through the initiative, learning valuable techniques such as discount incentives to encourage their clients to make faster payments. “We’re gonna keep our foot on the gas all year round, and I’m excited about the snowball effect that is happening and ultimately will benefit small business suppliers and vendors.

Another way the chamber is advancing the interests of small business owners is through its America’s Top Small Business Award, also launched during Small Business Week. Applications for the program will be accepted through July 7, from which finalists will be chosen for each of the seven regions in the U.S. These companies will then travel to Washington D.C. in the fall, where they will compete for their chance to win $25,000. To qualify, participating enterprises must employ less than 250 people or earn less than $20 million in annual revenue. Applicants are prompted to write about their business’s success, overcoming obstacles and why they believe they can win the award. “It is a very humbling process to judge,” admits Sullivan. “On the other hand, it renews my optimism in main street entrepreneurship, just seeing the stories and the journeys of these applicants…”

To read about these programs and hear more about the organization’s plans for small businesses, visit the U.S. Chamber of Commerce website.

"The reason the Chamber is bullish on small businesses for 2024 is that we have been experiencing record high start-ups for the past four years, from the application process to launching the business." – Tom Sullivan.