With inflation steadily ramping up its pressure on state residents, many citizens are now re-tightening their wallets once again in preparation for the uncertain future. The 2020-2021 Nevada Small Business Development Center client survey reveals the on-going struggles business owners in Nevada are still facing.
40.1 percent of surveyed participants report experiencing a negative impact on staffing, while 72.2 percent reported having negative impacts on their supply chains. 62.3 percent of participants also report still experiencing issues related to COVID-19 two years after the start of the global pandemic. The survey highlights the industries most severely affected by supply chain and COVID-related issues: accommodation, restaurants, manufacturing, professional services and science/technical services. Staffing issues were mainly experienced by the industries of administrative services, waste management, professional, technical and science services, as well as accommodation and food service.
The U.S. Census Bureau recently released its report on new business formations for the month of May 2022. A total of 420,586 new startup businesses were reported across the nation for the month, with 91,657 of those applications being filed in our corner of the West. From December 2020 through December 2021, Nevada saw 418,884 small business applications, an increase of 20.5 percent from the previous year, which would suggest businesses are booming, however, 2022 has seen a slowing of small business trends. While the year began steady with a 2.3 percent increase in new business applications for the month of January, the preceding months have seen those numbers plateau and fluctuate. February and March saw a collective 3 percent decrease, with a slight 1.8 percent bump back up in April before falling back down 0.6 percent in May. The state regularly sees about 340 residents per 100,000 start a new small business, though only 47.5 percent remain in business after five years.
Nevada is home to 270,000 small businesses, with over 480,000 employees, representing over 40 percent of Nevada workers. 99.2 percent of Nevada businesses are defined as small businesses with fewer than 500 employees. According to the Bureau of Labor Market Information and Strategic Initiatives, over the past two years, Nevada has ranked 10th in small business revenue growth.
Six months ago Governor Steve Sisolak launched the Small Business Connector center in North Las Vegas, a one-stop shop inside City Hall for small businesses to receive support and funding. He has also been adamant in several grant programs aimed at helping small business owners still recovering from the COVID-19 pandemic, particularly those owned by people of color, stating, “When we support our small businesses and entrepreneurs, we all win. We’ll continue making Nevada a hub for start-ups to create new high-paying jobs and grow our economy.” Nevada’s future will depend on how our leadership handles the continuing troubles while making sure our small businesses are fully protected and supported going forward.