How are small businesses doing in this economy?

Getting a read on small business sentiment can be difficult since they’re not like publicly traded companies that report their earnings to investors every quarter. Instead, surveys of small-business owners are used, and the latest data indicate a general decrease in optimism.

The National Federation of Independent Business’s optimism index fell in October for a second month to the lowest level since April. The Small Business Majority — which primarily represents firms with 1-to-10 employees — reports optimism is low right now. 

“Business owners tend to be an optimistic bunch,” said Brian Pifer is VP of research at Small Business Majority. “But this year has been really challenging in terms of revenue declines and expense increases.”

Costs are up for many businesses, including tariffs on imported goods and higher health insurance premiums. 

Pifer also said he’s seeing “a lot of headcount decreases among Hispanic-owned businesses, the impacts of immigration enforcement.”

A rosier view comes from a recent report from small-business lender Cardiff, which finds company owners are ‘cautiously optimistic,” said CEO William Stern.

Stern said that while there is plenty of anxiety about inflation and tariffs, many firms are still poised to grow. 

“There’s been a 25% increase by small-business owners applying for capital, building a war chest. They’re buying materials in bulk, they’re doing more marketing.”

Ariel Voorhees in South Burlington, Vermont, has been growing her personal-chef business, called Gather Round. She hired her first employee this year and but said some of her customers are struggling in this economy.

“A personal chef is a luxury,” Voorhees said. “Some families have had to stop service — layoffs in the family or medical bills.”

Still, with families getting ever-busier, she said she thinks she’ll have enough demand to keep two chefs cooking this coming year.