Most small business owners report addressing employee mental health

Washington, DC, September 20, 2023 — The Q3 2023 MetLife/U.S. Chamber of Commerce Small Business Index reads at 69.2, marking an increase since last quarter (63.1) and the highest reading since the start of the COVID-19 pandemic. While their concerns around inflation persist, small businesses are more positive about the macroeconomic environment this quarter, marking a return to sentiments from early 2022, before inflation was at its peak. These improving outlooks on the national and local economy, paired with more optimism toward their own business health and cash flow, are largely driving the increase in the index this quarter.

Despite these improved perceptions of the economy, half of small businesses remain concerned about inflation, followed by supply chain issues and revenue. Compared to last quarter, though, small businesses are less concerned about interest rate hikes (with reported concerns more in line with Q1 2023 and late last year). Additionally, as they currently feel better about the broader environment and their own bottom line, some seem to be widening their scope of focus on other issues, such as employee retention or affording employee benefits or healthcare. Further, more now say they are actively addressing employee mental health and well-being as a priority compared to two years ago. Many small businesses report leaning into their small, tight-knit family culture to retain employees – perhaps separating them from larger corporations when working to retain current employees and attract new recruits, while keeping a close eye on their financial health.

For more information about this study, please click here.

About the Study

These are the findings of an Ipsos poll conducted between July 20 – August 8, 2023. For this survey, a sample of 751 small business owners and operators age 18+ from the continental U.S. Alaska and Hawaii was interviewed online in English.

The sample was randomly drawn from partner online panel sources that specialize in B2B sample and does not rely on a population frame in the traditional sense. Ipsos uses fixed sample targets, unique to the study, in drawing sample. Small businesses are defined in this study as companies with 500 or fewer employees that are not sole proprietorships. This sample calibrates respondent characteristics to be representative of the U.S. small business population using standard procedures such as raking-ratio adjustments. The source of these population targets is U.S. Census 2020 Statistics of U.S. Businesses dataset. The sample drawn for this study reflects fixed sample targets on firmographics. Post-hoc weights were made to the population characteristics on region, industry sector and size of business. Additional post-hoc weights were made to the population characteristics on the gender of the business’s owner and whether the business is minority-owned or not. The source of these two weight variables is the Small Business Administration’s 2022 Small Business Profiles.

Statistical margins of error are not applicable to online non-probability polls. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 4.4 percentage points for all respondents. Ipsos calculates a design effect (DEFF) for each study based on the variation of the weights, following the formula of Kish (1965). This study had a credibility interval adjusted for design effect of the following (n=751, DEFF=1.5, adjusted Confidence Interval=+/-5.9 percentage points).

Starting with the March 2020 survey, small business decision makers are reached via an online survey, in place of the typical phone-based approach. This methodological shift is in response to lower anticipated response rates in dialing owners at their businesses as a result of mandated closures related to the COVID-19 outbreak. While significant changes in data points can largely be attributed to the recent economic environment, switching from a phone to online approach may have also generated a mode effect.

For more information on this news release, please contact:

Mallory Newall

Vice President, US

Public Affairs

+1 202 374 2613

[email protected]

About Ipsos

Ipsos is one of the largest market research and polling companies globally, operating in 90 markets and employing over 18,000 people.

Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. Our 75 solutions are based on primary data from our surveys, social media monitoring, and qualitative or observational techniques.

Our tagline "Game Changers" sums up our ambition to help our 5,000 customers move confidently through a rapidly changing world.

Founded in France in 1975, Ipsos has been listed on the Euronext Paris since July 1, 1999. The company is part of the SBF 120 and Mid-60 indices and is eligible for the Deferred Settlement Service (SRD).ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP www.ipsos.com