Small businesses are still struggling as they continue to face a host of economic challenges.
Shilpa Sankaran, founder of Wisconsin-based KOSA Ayurvedic Spa, opened up her shop before the pandemic. She's battled through difficult times. From coronavirus-related disruptions, staffing challenges and higher interest rates. However, she hasn't made a profit.
Despite surging business and being ranked by National Geographic Travel as one of the top 21 wellness retreats in the world, "I have yet to bring home a single dollar," Sankaran said.
According to the National Federation of Independent Business' (NFIB) latest survey of roughly 1,200 small businesses, a seasonally adjusted 20% more business owners reported lower sales in the past three months, the lowest since July 2020. The data also showed that a seasonally adjusted 26% of them said they hiked prices in October.
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Sankaran wasn't one of them, though she said her "costs go up exponentially every single day." Even necessities like oil they use costs about 50% more than when she opened, Sankaran said.
"Although optimism is on the rise on Main Street, small business owners are still facing unprecedented economic adversity," NFIB Chief Economist Bill Dunkelberg said, adding that low sales, worker shortages and inflationary pressures continue to challenge "our Main Streets."
Sankaran said the attention on small businesses has dropped off since the pandemic, but the problems are still persisting.
"You see it happening. You see people shut their doors every day," Sankaran said, adding that the most successful businesses in the area are "shutting their doors as we speak."
During the pandemic, she was only able to generate a minimal amount of revenue due to closures and social distancing requirements, forcing her to run the spa with limited staff.
When restrictions eased and demand finally snapped back, Sankaran said she didn't have enough staff to meet it.
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The utility prices in her building have doubled, "so that's thousands of dollars a month," she said. Sankaran is also still paying back the rent she owed her landlord during the years her business was closed during the pandemic and when the spa was running with minimal operations.
"The other thing that is sticking with me is interest rates because I have a lot of debt," she added.
Given all the increased costs, she said "it's very hard for me to bring home an income."
Jennifer Tartini, owner of Mosaic Collective, a retail shop in Lynchburg, Virginia, told FOX Business that she is "deeply concerned about meeting the sales goals necessary to keep our doors open in 2025" this holiday season.
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"Competing with fast-fashion giants like Shein, Temu, and Amazon is daunting, especially in an economic climate where customers are prioritizing the lowest price over supporting small businesses," Tartini said.
This year in particular has been difficult due to the fact that discretionary spending dropped significantly, she added.
While Tartini understands that families need to focus on covering essentials like food and bills, she said "it creates a unique challenge for us."
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Her business — founded on a passion for helping vulnerable people around the world — sources ethical products to ensure people receive a living wage and a safe working environment.
"It’s a delicate balance — convincing customers to invest in meaningful purchases while navigating the financial realities we’re all facing," Tartini said.
