President Joe Biden’s performance among small business owners has taken a nosedive, with the quarterly CNBC/SurveyMonkey Small Business Survey revealing a fresh low in his approval. The economy’s small business confidence, however, is showing a slight rebound in the fourth quarter. At the heart of this is a clear divide in economic perception between Republicans who believe that there’s a significant improvement economically and Democrats who remain somewhat pessimistic about any economic progress.
Biden has been struggling to sell his economic policies, or “Bidenomics,” which contrasts with impressive GDP growth, a solid jobs market, and declining inflation. His difficulties transcend to America’s small business owners, who seem unimpressed with his vision for economic prosperity.
According to the CNBC/SurveyMonkey Small Business Survey, President Biden’s net approval rating among small business owners is 30, marking a 13% drop from the first quarter of 2021 when it stood at 43%. Strong disapproval of his presidency outweighs strong approval by a significant margin, at 56% compared to 13%.
The disparity in economic assessment becomes more apparent among small business owners with regard to the holiday sales outlook, where 37% of GOP business operators anticipate a slower sales season compared to just 15% of Democrats.
The small business community’s stance is influenced to a great extent by political affiliations, with only 7% of Republicans holding a favorable view of President Biden as opposed to 85% of Democrats. Independent business owners are also more aligned with Republicans than Democrats, as evidenced by 26% of them expressing approval of Biden, while 48% disapprove strongly.
With the recent rebound in small business confidence despite Biden’s shrinking approval, it is evident that partisanship plays a significant role in shaping the economic sentiments of American business owners. Factors such as inflation and interest rates, along with the unequal impact of input prices on small businesses, also contribute to this polarization.
Despite inflation rates falling to multi-year lows and significant decreases in gas and food prices across America, small business owners, particularly 70% of them, acknowledge the continued rise in prices. This concern is reflected across party lines, with 43% of Democrats also expressing fears over escalating inflation.
However, amid these concerns, a notable portion of business owners from both political affiliations are optimistic about the sales and job outlook. While they acknowledge economic challenges, a majority anticipate stable sales and hiring levels over the next 12 months, indicating a sense of cautious optimism within the small business community.
