Small-Business Outlook: What Are The Biggest Challenges On Main Street?

With the new year in full swing, business owners are now putting their 2012 plans in place, addressing old challenges and trying to head off new ones. While the economy has made some modest improvements, the outlook remains shaky on Main Street. According to a recent study by the National Federation of Independent Business Research Foundation, most small businesses cited uncertainty (61 percent) and weak sales as their primary impediments to growth. They also named weak sales as the top business concern in NFIB's monthly Small-Business Optimism Index report for the 16th consecutive quarter.

Other challenges recession-weary small-business owners reported? The adverse impact of regulation (cited by 40 percent), lack of finance (41 percent) and lack of skilled workers (61 percent).

Politicians and pundits alike love to speak on behalf of business owners and claim they know what's ailing them. We decided to actually ask them. Here's a look the biggest challenges 12 business owners expect to face in 2012.

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Comments

[azravenwood]

12:09 PM on 02/06/2012

Times are changing and the Internet is a big game changer. People can make money from home and sitting behind their computers. The dream of owning your own business is still alive, it just has a different format. With that said, I think people are getting lonely working at home, so I can see people sharing office space on Main Street.

I also see coffee houses still being popular or any place people can gather. I also see that any business that provides a value that goes beyond pricing will succeed. Big box stores will always beat everybody out with price - so small business owners have to become more creative. We can't continue adopting our ma and pa's business model but recreate it and remold it into something else.

[mhh310351]

03:18 PM on 01/28/2012

What Are The Biggest Challenges On Main Street?

In two words or less?!?!?

Wall Street!!!!!

[RetailRich]

03:14 PM on 01/26/2012

It is very tough out there and what you say is true. However, we all basically have 2 choices. #1 You can blame the government, the competition, the internet and the economy and continue to place blame on things you have little or no control over and possibly end up closing your doors! And #2 You can make up your mind that everything you have control over is going to be done in the best way possible. The world is still crying out for unique!

I'm a retail consultant and I walk through small independent retailers almost everyday, and what I see isn't always too impressive. Customer service is at an all time low. There is a huge gap between what we think we offer and what the reality is. Many store are dirty. Sales clerks read off of boxes in front of the customer instead of knowing the products. Too many stores haven't tried to really update themselves in years. How about a coat of paint once in a while? There are many ways to survive against the big box stores, the e-tailers and the local competition, but you must take a look inward.

My question is: Why would anyone want to go into retailing and pay the high rent, have the employee problems, put up with the pressure, the hours and the financial risk and not make up their mind they're going to deliver a first rate store with excellent customer service? Rich Gordon retailrichez.com

[Katie McCaskey]

07:20 PM on 01/26/2012

I love this response. As an indie business owner in a small town, I'm actually really excited about the creative possibilities available as we remake our economy. Is it easy? Do all of us like the changes? No. It's time to adapt. I share my thoughts through the small town lens in the "Micropolitan Manifesto": http://bit.ly/zcZf9T

[pattileigh]

08:36 AM on 01/26/2012

The threat to small business is big business. I live in a small town. We had a great local department store in our town for years. A large countrywide department store moved in and put them out of business. So what happens next? That store got bought out by a bigger company who closed the department store in our town. Now we have no department store. The price of renting space in some of these strip malls is excessive also. I have some friends with small businesses who have had to move a few times because rents are ridiculous. One restaurant owner was charged $8,000 a month. She said there's no way a small town can generate enough income to pay that rent. So her former location has been empty for a few years now. They'd rather write off the loss then rent the space. Big business kills small business.

[dcol]

06:19 PM on 01/25/2012

As a small biz owner, the greatest threat is large coporations trying to destroy the small biz. I say throw on the regulations and give us a chance to compete.

[Robert Gudzikowski]

11:31 AM on 01/25/2012

Small bizz was the best thing that ever happened to me.Till the economy took a dump and all but ended my recreation based enterprise. We all must learn to adapt and overcome but its really hard being an individual ant building the anthill!

[frank1946]

01:29 AM on 01/25/2012

Business people are afraid of sales just stopping, when Government, Business and Consumers
are in deeply in DEBT the message is clear....................everyone is fearful !

Pass a Federal Budget, limit spending to 20 % of GDP ?

Act like Adults ?