There's one more reason for small business owners to sigh about the current state of the U.S. economy. According to a recent study by the U.S. Small Business Administration, skyrocketing energy costs are impacting the small businesses sector — particularly the manufacturing and commercial sectors — the most.

In manufacturing, about 10 of 17 small businesses "spent considerably more than large firms did, on a per value of industry shipments basis," according to the SBA's Office of Advocacy.  In the commercial sector, about 26 of 31 of "small firms have higher energy expenditures on a cost per dollar of sales basis."

The study also finds that small businesses pay more for electricity and natural gas. "The smallest size establishment category (under 50 employees) pays 35 percent more for electricity than the sector average, while the largest establishment category (1,000 or more employees) pays 17 percent less than the sector average," the study states.

To view the SBA's entire report, go to sba.gov/advo.

--Cassandra P. Foster
cfoster@safnow.org

 

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