LEXINGTON, Ky. (LEX 18) — A recent report shows small business optimism is at an 11-year low, but small businesses in central Kentucky are working to overcome the current economic challenges.
The National Federation of Independent Business (NFIB) collects data from businesses across the country, tracking the 'Small Business Optimism Index'. In the latest report, the index has reached its lowest level since the end of 2012.
The index takes into account plans to add jobs, expected sales, and current job openings.
As inflation and a difficult hiring climate have burdened small businesses, the index is now lower than it was at the beginning of the pandemic.
LEX 18 decided to meet with a pair of small business owners from different industries this week, to get their perspectives on the report and how they're managing to thrive, even though a challenging economy.
At SRC of Lexington, a local manufacturing company that builds machinery for companies around the world, general manager Rob Shear said the company has overcome a number of challenges in recent years.
"Inflation's been really tough. We've had suppliers that have given us 20% price increases, and then our customers aren't willing to take a price increase from us," he said.
Still, he added that through hiring troubles and skyrocketing prices, SRC has been able to grow. Even now, it's planning a $15 million expansion and has hired 40 people since the pandemic began.
"I'm optimistic. That's really my job. I mean, to look at the opportunities ahead of us and there's a ton of them. We've got good people, and I think we're going to keep growing the business," Shear said.
At an even smaller scale, the Kentucky Event Company has had to shift the way it does business over the last several years.
What started out as an internship project for Kaelyn Query Caldwell a little over 10 years ago has become a Lexington-based event planning company that does business all over the country.
Obviously, it's difficult to plan events during a pandemic.
Since 2020, the business has started booming again.
"Last year, we had our best financial year ever. Now, is that because business is back? Is it because we're better at spending or not spending? And maybe it's a combination of both," she said.
She said it hasn't come without challenges. Still, she sees trouble filling positions, as many people left the hospitality workforce for comfier 9 to 5, traditional jobs.
Inflation and supply chain issues have also created problems, as it takes longer to get items for events, and they're typically more expensive.
Despite the challenges and the NFIB report, it's clear that not all optimism is lost among small business leaders in Central Kentucky.
"It's a balancing act. And it's a constant ebb and flow," Caldwell said.
For Shear and SRC, the key is hiring a strong workforce and being transparent with employees.
"I'm optimistic. That's really my job. I mean, look at the opportunities ahead of us, and there's a ton of them. We've got good people, and I think we're going to keep growing the business," he said.
