A recent survey from GoDaddy (NYSE: GDDY) of small business sentiments revealed that almost three-quarters (74%) of U.S. small business owners say their perception of the American Dream has changed. Small business owners today define their achievement of the American Dream as living a comfortable lifestyle (56%), feeling happy with their life (54%) and having the freedom to pursue their passions and interests (49%). While most think they can still achieve that, 80% percent think that inflation is a barrier to that goal. Given that small businesses are routinely perceived as being led by people who are self-starters and can do minded, the fact that they believe that homeownership is getting harder to attain is significant.

 

Part I – Go Daddy and NFIB Insights

“63% currently own a home,” “yet 45% of entrepreneurs view [home ownership important] in achieving the American Dream.” So said Go Daddy’s recent survey of small business owners that generated the following results.

 

In your opinion, which of the following indicate that you have achieved the American dream?	%
Living a comfortable lifestyle	56.4 %
Feeling happy with your life	54 %
Freedom to pursue your own passions and interests	49.2 %
Owning your own home	45.2 %
Being your own boss	38.7 %
Having money/assets to leave to your children	33.7 %
Being able to pay off your debt obligations	27.2 %
Having equal rights and access to opportunities	26.1 %
Owning a car	18.1 %
Earning enough to move into a higher income bracket	17.5 %
Getting a better education than previous generations in your family	14.9 %
Sending your children to college	14.3 %
Feeling like you belong in the USA	14.3 %
Becoming or being an American citizen	9.1 %
Improve your social status	8.8 %
Going to college	8.6 %

 

More insights from the GoDaddy survey are as follows.

74% of U.S. small business owners say their perception of the American Dream has changed.

However, 39% of small business owners do believe that being their own boss represents an achievement of the American Dream. This link is more pronounced among male (43%) than female (36%) small business owners. It is also particularly resonant for business owners who identify as Black (46%) and of Hispanic, Latino or Spanish origin (43%). Despite this, just 6% of people cited that as a ‘top three’ reason that they started their own business, with reporting women slightly higher than men (7% vs 5.5%).

While the majority of American small business owners believe that being a successful entrepreneur is a key way to create new generational wealth (78%), many have modest business aspirations, wanting to either stay a ‘solo entrepreneur’ (28%) or maintain being a small business with some employees and maybe a physical location (35%). Only 12% aspire to one day become a corporate business with a large employee base and headquarters. While revenue growth (63%) is unsurprisingly a top indicator of small business success, according to the survey respondents, other indicators point to the importance of emotional contentment rather than material accomplishments. For example, achieving happiness (60%) and a healthy work-life balance (60%) rounded out the top three indicators of success.

Just under two-thirds (62%) of American small business owners are confident they will achieve what they perceive as the American Dream, with male business owners showing more confidence than female (71% vs. 55%) and Millennials reporting themselves as the most confident generation (66%).

Small business owners do, however, face daunting economic concerns. For instance, 80% of small business owners agree that inflation is currently impeding entrepreneurs trying to achieve the American Dream. When reflecting on their biggest financial challenges:

• 42% rated some level of difficulty in access to financial capital when starting their business
• 23% pointed to rising costs of wages and materials
• 23% cited lack of personal wealth, which is notable when 55% used personal savings to start

Other top barriers to the American Dream for small business owners include:

• Lack of access to technology (33%)
• Lack of access to free/affordable healthcare (32%)
• Lack of education (28%)
• Discrimination (28%)
• Inadequate language/communication skills (24%)

“This survey data shows that American small business owners are thinking beyond revenue and sales growth when they consider what the American Dream means to them – today it’s more about feeling a sense of belonging, freedom, happiness, and work-life balance,” said GoDaddy Chief Marketing Officer Fara Howard. “Whatever their interpretation is of the American Dream, GoDaddy is committed to helping these entrepreneurs achieve success on their terms.” ##

 

The July 2023 NFIB survey results of small business optimism, or lack thereof, are as follows.

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Note that small business optimism, per the NFIB’s long running survey soared during the Trump years but have been significantly lower under both Obama and Biden.

Per the NFIB are the following.

“With small business owners’ views about future sales growth and business conditions dismal, owners want to hire and make money now from solid consumer spending,” said NFIB Chief Economist Bill Dunkelberg. “Inflation has eased slightly on Main Street, but difficulty hiring remains a top business concern.”

The NFIB previously reported to MHProNews that several hundred manufactured home industry connected locations were members of their trade group.

 

Key findings include:

• Owners expecting better business conditions over the next six months improved 10 points from June to a net negative 30%, 31 percentage points better than last June’s reading of a net negative 61%. This is the highest reading since August 2021 but historically very negative.
• Forty-two percent of owners reported job openings that were hard to fill, unchanged from June but remaining historically very high.
• The net percent of owners raising average selling prices decreased four points to a net 25% seasonally adjusted, still a very inflationary level but trending down. This is the lowest reading since January 2021.
• The net percent of owners who expect real sales to be higher improved two points from June to a net negative 12%, a very pessimistic perspective.

As reported in NFIB’s monthly jobs report, 61% of owners reported hiring or trying to hire in July, up two points from June. Of those hiring or trying to hire, 92% of owners reported few or no qualified applicants for the positions they were trying to fill. Thirty-three percent of owners reported few qualified applicants for their open positions and 23% reported none.

Fifty-five percent of owners reported capital outlays in the last six months, up two points from June. Of those making expenditures, 38% reported spending on new equipment, 22% acquired vehicles, and 15% improved or expanded facilities. Eleven percent spent money on new fixtures and furniture and 6% acquired new buildings or land for expansion. Twenty-seven percent of owners plan capital outlays in the next few months.

A net negative 13% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, down three points from June and the lowest reading since August 2020. The net percent of owners expecting higher real sales volumes improved two points to a net negative 12%.

The net percent of owners reporting inventory gains was unchanged at a net negative 3%. Not seasonally adjusted, 14% reported increases in stocks and 14% reported reductions. A net negative 4% of owners viewed current inventory stocks as “too low” in July. By industry, shortages are reported most frequently in retail (15%), transportation (14%), manufacturing (11%), and services (9%). Shortages in construction (6%) have been reduced. A net negative 2% of owners plan inventory investment in the coming months, up one point.

Falling four points from June, the net percent of owners raising average selling prices dropped to a net 25% (seasonally adjusted), the lowest since January 2021. Twenty-one percent of owners reported that inflation was their single most important problem in operating their business. Unadjusted, 14% reported lower average selling prices and 40% reported higher average prices. Price hikes were the most frequent in finance (53% higher, 13% lower), retail (52% higher, 10% lower), wholesale (44% higher, 15% lower), and construction (43% higher, 6% lower). Seasonally adjusted, a net 27% plan price hikes.

Seasonally adjusted, a net 38% reported raising compensation. A net 21% plan to raise compensation in the next three months, down one point from June. Ten percent of owners cited labor costs as their top business problem, up two points. Twenty-three percent of owners said that labor quality was their top business problem.

The frequency of reports of positive profit trends was a net negative 30%, down six points from June. Among owners reporting lower profits, 30% blamed weaker sales, 19% blamed the rise in the cost of materials, 18% cited labor costs, 9% cited lower prices, 5% cited usual seasonal change, and 4% cited higher taxes or regulatory costs. For owners reporting higher profits, 44% credited sales volumes, 34% cited usual seasonal change, and 9% cited higher selling prices.

Three percent of owners reported that all their borrowing needs were not satisfied. Twenty-five percent reported all credit needs were met and 62% said they were not interested in a loan. A net 6% reported their last loan was harder to get than in previous attempts. Four percent reported that financing was their top business problem. A net 23% of owners reported paying a higher rate on their most recent loan. To date, Fed policies raising interest rates and reducing their portfolio have not had a significant impact on small firms.

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. …”

Antitrust 

Among the issues that NFIB members feel strongly about is increasing competitiveness against the tech giants and the impact of “Anti-competitive behavior and a lack of transparency on the part of Pharmacy Benefit Managers (PBMs) have resulted in significant barriers to affordable healthcare.” Obviously, healthcare costs impact virtually everyone and every profession, including but not limited to, manufactured housing. Something similar can be said about the impact of big tech on smaller businesses.

Per the NFIB: “Take Action: Join other small business owners in telling Congress to support the Pharmacy Benefit Manager Transparency Act and its price transparency to small businesses through PBM reform.”

According to the NFIB is an example of what their trade group is doing to boost their members ability to compete against giant firms.

 

Big Tech Antitrust

Big Tech companies like Amazon and Google, which run online marketplaces, engage in practices that are biased against small businesses, which lack bargaining power and alternative choices. For small business sellers using marketplace platforms, competition between the operator’s own products and third-party sellers creates conflicts of interest and has been shown to lead to unfair business practices.

On Nov. 17, 2022, NFIB members Mark Faulkner and Deeannah Seymour made the case for Big Tech antitrust legislation in front of a U.S. Senate briefing and explained their concerns in brief video testimonies. NFIB also hosted a virtual briefing with a panel of five small business owners and Rep. Ken Buck (R-CO) who is a principal U.S. House author of the American Innovation and Choice Online Act. Each of the five panelists spoke to their experience using big tech across a variety of platforms.

In an NFIB member ballot, 84% of NFIB members favor Congress taking legislative action to control dishonest and anticompetitive practices of large tech companies.

1. 2992, the American Innovation and Choice Online Act, introduced in the previous Congress, would ensure equality for small businesses and options for consumers. NFIB supports preventing companies like Amazon and Google from engaging in practices such as promoting their products over higher reviewed products from a small business and adding accountability so small business owners can trust their products will be sold impartially.”

Additionally, according to their website: “NFIB Small Business Legal Center has argued repeatedly in antitrust cases…” Their Legal Center page says in part that: “We advocate and fight for small businesses in state and federal courts and before the U.S. Supreme Court.” They also ‘educate and assist’ small business owners on legal matters. ##

Recall that earlier this year, MHLivingNews and MHProNews reported that apparently pro-manufactured housing law professor Daniel R. Mandelker J.D., had advocated that manufactured housing professionals and advocates create an organization (think, nonprofit) to boost the industry through litigation and lobbying.  Per Mandelker: “A support organization is needed that can provide litigation and legislative support to help manufactured housing advocates with zoning reform.”

Attorney and Niskanen Center housing policy advocate Andrew Justus noted in May 2023 that according to their research that what was “holding back” manufactured housing was zoning and financing barriers.

 

Andrew Justus, J.D., Niskanen Center Housing Policy Analyst, Hill Op-Ed Asks and Answers – ‘What’s Holding Back Manufactured Homes?’ Sunday Weekly MHVille Headlines in Review

 

While the Manufactured Housing Institute (MHI) did launch litigation earlier this year in the pending Department of Energy (DOE) rule, they did so late and only under extended public pressure from MHARR and MHProNews. The Texas Manufactured Housing Association (TMHA), which joined MHI in that suit, has indicated that MHI may de facto be accepting the rule, a concern that MHARR has strongly opposed.

 

 

 

In his Knudson Law thesis that probed problems causing manufactured housing industry underperformance, attorney Samuel “Sam” Strommen advocated for antitrust action that would include targeting MHI.

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An MHProNews illustration and quote infographics on the antitrust concerns in MHVille are linked here and here. By contrast, the evidence reflects that MHI’s pro forma antitrust letter arguably appears to be window dressing and that MHI linked bloggers and trade media are routinely silent on the evidence for these concerns.

A special report is pending on manufactured housing challenges and proposed cures the Masthead that is planned for publication in early September 2023, perhaps before Labor Day. Watch for it. ##

 

Part II. Daily Business News on MHProNews Markets and Headline News Segment

 

Headlines from left-of-center CNN Business – from the evening of 8.31.2023

• It’s not just crime
• What’s really going on as retailers flee San Francisco’s shrinking shopping district
• The logo of Gannett Co is seen outside their corporate headquarters in McLean, Virginia, July 23, 2013.
• Gannett to pause AI experiment after botched high school sports articles
• The company logo of Chinese developer Country Garden at the Shanghai Country Garden Center in Shanghai, China, August 9, 2023.
• Chinese homebuilder Country Garden warns it could default after posting $7 billion loss
• American Airlines flight attendants vote to authorize a strike
• Hundreds of flights are canceled as Hurricane Idalia disrupts air travel
• Amazon CEO tells employees to return to the office or their days may be numbered
• Google launches watermarks for AI-generated images
• Apple expected to unveil new iPhone at ‘Wonderlust’ special event
• US pending home sales rose in July for the second month in a row
• AURORA, COLORADO – AUGUST 17: A general view of the atmosphere as Nordstrom Rack opens a new store on August 17, 2023 in Aurora, Colorado.
• The US economy grew more slowly in the second quarter than previously estimated
• Mark Thompson named CNN chief executive and chairman at critical juncture in news network’s history
• Warm words but little ‘real action’ as US commerce secretary ends China visit
• Rising labor costs are making AI stocks even more attractive
• Climate change has ravaged India’s rice stock. Now its export ban could deepen a global food crisis
• Head of powerful real estate trade group resigns amid sexual harassment allegations
• 3M agrees to pay $6 billion after US military said faulty earplugs led to hearing loss
• Key San Francisco Fed official who oversaw supervision of SVB will retire
• Hawaiian Electric says power lines started morning fire on August 8, but not afternoon Lahaina Fire
• US financial regulators green lit new rules aimed at reducing the cost of bank failures
• Crypto assets soar as US court clears a path for bitcoin ETFs
• ‘Barbie’ is Warner Bros.’ highest-grossing global release ever
• Employers could offer you tax-free help with your student loan payments. Most are not
• AI tools make things up a lot, and that’s a huge problem