A new Alignable report shows that nearly 40% of small businesses, the backbone of America, could not pay their rent in October. [We can thank the Biden build back better initiative.]
About 37% of small businesses, which employ almost half of all Americans working in the private sector, could not pay their rent in full in October.
The Boston-based Alignable survey covers a network of 7 million small business members.
Chuck Casto, head of research at Alignable, said that small business owners are resilient, but incomes are “basically being eaten away by inflationary pressures.”
The survey of 4,789 small business owners was conducted between Oct. 15 and Oct. 27. The findings partly reflect how inflation affects small businesses. More than half say their rent is at least 10% higher than it was six months ago, and seven say rents have increased by at least 20%.
About 49% of restaurants were unable to pay their rent this month, up from 36% in September, while 37% of real estate agents couldn’t pay their rent, up from 27% last month, reflecting the fallout from a slowdown in home sales as higher mortgage rates chill the housing market.
Covid-19 supply chain issues also remain a major obstacle for companies, particularly for small business owners who run car repair shops and auto dealerships. The scarcity of parts their customers need to fix their vehicles is still slowing business. The report said that almost half of car repair shops and auto dealerships could not meet their rent this month.
Alignable found that one-third of firms are at risk of closing if revenue does not “ramp up” in the coming months.
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It’s not getting better after the lockdowns, thanks to inflation. These businesses can’t pay the rent in October. Gyms, musicians, and artists went up 1%, but everyone else is in worse shape.
Compare these failing businesses to the national average.
Alignable’s October Rent Report
I’d almost say this was planned since Big corporations, the Biden administration, and The Great Reset do not like small businesses.
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