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The small business network Allignable reports that 63% of small
business owners said they made less money in the 4th quarter of
2023 than the year before, leading to recent troubles in
January.
“It is a rough start to the year because 37% said they can’t pay
their rent in full or on time,” said researcher Chuck Casto.
“Just 29% saying they couldn’t pay the rent in full or on time,”
said Casto. “That is down from 35% in December, and down 18
percentage points from 47% in November.”
The top three states with the highest percentage of small
businesses facing rent troubles in January were Pennsylvania,
Texas and Arizona.
The top three sectors that couldn’t pay their rent on time or in
full in January included the tech sector, travel and lodging,
and retail.
Several massive layoffs from large and mid-sized tech companies
have occurred already this year, and marred the employment
landscape for much of 2023.
Interest rates continue to be an issue. Fifty-three percent of
small business owners said current interest rates are harming
them, eroding margins, reducing consumer spending and hindering
their ability to land new loans.
The report is based on responses from over 6,000 randomly
selected small business owners surveyed from Jan. 1, 2024 to
Jan. 30, 2024, as well as input from more than 100,000 other
respondents over the past two years.
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