Small business owners are hoping economic uncertainty won’t slow spending this holiday season

Consumers spent an estimated $23 billion at small businesses and restaurants on Small Business Saturday in 2021, and the Small Business Administration is hoping for a repeat this Saturday.

Pastry chef Jean Chrispin Djomo opened his new French bakery, Les Delices de France Bakery, in the Dallas International District thanks to a loan from the Small Business Administration.

“I’ve decided to do something that I love and that can also support me,” Djomo said.

On Tuesday, the acting SBA Southcentral Regional Communications Director visited the artery ahead of Small Business Saturday, when consumers are encouraged to shop small businesses on the Saturday after Thanksgiving.

“Business goes on whether it’s a good year or a bad year because that’s the nature of the beast,” said Ahmad Goree of the SBA.

According to Goree, 97% of all businesses in the US are small businesses.

This holiday shopping season comes at a time of growing economic uncertainty.

“We’re really at an extraordinary point in this economy,” said SMU economist Mike Davis.

Slowdown in inflation? Not in some cities where consumer prices are still above 12%

Davis believes record inflation could dampen consumer spending, and rising interest rates make it more expensive for everyone to borrow money on credit cards or through loans and mortgages.

“Business is good at the moment, but how long will that last?” he said. “We can hope it lasts a long time but there is so much uncertainty right now. We could have a recession sometime in the next few quarters.”

Consumers we spoke to at Djomo’s Bakery plan to support him and other businesses as much as possible.

“I’m so glad we found it and I think we’ll come here for the croissants,” said customer Judith Alvarenga.

Inflation is causing the biggest pay cut for Americans in 25 years, data shows

“It’s a bit of a patriotic duty to support something like that,” said Ben Jaminchessler.

The hope is that it will be enough to keep the doors open in the coming year.

“Things are tough but I have high hopes,” said Djomo.

Davis says everyone should be prepared for some pretty sudden changes in the economy in the coming months.

He says it’s important to put some money aside, whether you’re a business owner or a consumer.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *