Small businesses still struggling: ‘I haven’t brought home a single dollar’

Small businesses are still struggling as they continue to face a number of economic challenges.

Shilpa Sankaran, founder of KOSA Ayurvedic Spa in Wisconsin, opened her shop before the pandemic. He has faced hard times. From the disruptions related to the coronavirus, labor challenges and high interest rates. However, it did not make any profit.

Despite growing business and being ranked by National Geographic Travel as one of the 21 best health destinations in the world, “I still haven’t brought home a single dollar,” Sankaran said.

According to the National Federation of Independent Business’ (NFIB) latest survey of nearly 1,200 small businesses, 20% more seasonally adjusted business owners reported lower sales in the past three months, the lowest since July 2020. The data also showed that 26 % of them said they raised prices in October.

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Sankaran was not one of them, although he said that “costs are increasing every day.” Even necessities like the oil they use cost about 50% more than when he opened, Sankaran said.

“While optimism is growing on Main Street, small business owners are still facing unprecedented economic hardship,” said NFIB Chief Economist Bill Dunkelberg, adding that low sales, labor shortages and inflationary pressures continue to challenge “our Main Streets.”

Sankaran said attention to small businesses has decreased since the pandemic, but the problems persist.

“You see what’s happening. You see people closing their doors every day,” Sankaran said, adding that the most successful businesses in the area “are closing their doors as we speak.”

During the violence, she was able to make only a small amount of money due to the closure and social distancing requirements, which forced her to run a spa with few employees.

When the restrictions eased and demand rebounded, Sankaran said he didn’t have enough staff to meet it.

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KOSA Wellness Spa & Retreat in Wisconsin. (Martin Moncal)

Utility prices in her building have doubled, “so that’s thousands of dollars a month,” she said. And he is still paying the rent he owed his landlord when his business was closed during the violence and when the spa was understaffed.

“One thing that still stands for me is the interest because I have a lot of debts,” he added.

Given all the increased costs, he said, “it’s very difficult for me to bring money home.”

Jennifer Tartini, owner of Mosaic Collective, a retail store in Lynchburg, Virginia, told FOX Business that she is “very concerned about reaching the sales goals necessary to keep our doors open through 2025” this holiday season.

Mosaic Collective, a boutique in Lynchburg, Virginia. (Photos by Mackenzie and Leigh)

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“Competing with fast fashion giants like Shein, Temu, and Amazon is scary, especially in an economy where customers prioritize low prices over supporting small businesses,” said Tartini.

This year in particular has been difficult because discretionary spending has fallen sharply, he added.

Mosaic Collective, a boutique in Lynchburg, Virginia. (Photos by Mackenzie and Leigh)

Although he understands that families need to focus on combining important things such as food and credit, he said “it creates a unique challenge for us.”

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His business – founded on a love of helping vulnerable people around the world – sources ethical products to ensure people have a living wage and a safe workplace.

“It’s a delicate balance—convincing customers to invest in smart purchases while also assessing the financial realities we all face,” she said.