Nevada State Bank recently released the results of its ninth annual survey of small business owners and executives in Nevada. The survey revealed that businesses are feeling optimistic about the coming year, despite the challenges they’ve faced over the past two years due to the COVID-19 pandemic.

Some chronic problems like a shortage of trained workers continue, and are joined this year by a new challenge: supply chain disruptions. However, Nevada business leaders remain optimistic that they’ll be able to deal with these issues and get back to normal soon. Most believe their company will return to pre-COVID-19 levels within two years.

“Successful business executives have become adept at overcoming obstacles, finding ways to address new problems, and persevering through whatever comes their way,” said Terry Shirey, President and CEO of Nevada State Bank. “Nevadans are nothing if not resilient, as they believe 2022 will be better, with nearly 78 percent believing the business environment will improve or stay the same.”

The statewide survey by research firm Applied Analysis was conducted during January 2022 on behalf of Nevada State Bank. To ensure it is statistically significant, the bank surveyed more than 400 randomly selected small business decision makers, including owners, operators, and executives representing Nevada businesses with annual sales ranging from $250,000 to $10 million. About 20 percent of survey respondents were based in rural Nevada. 

The survey asked questions surrounding the COVID-19 pandemic, the economy, business environment, revenue and profitability, employment, community involvement, and the overall outlook for small businesses in Nevada. Highlights of this year’s survey include:

  • The economy remains a top concern for businesses in Nevada. Respondents remain generally pessimistic about where the national economy is headed, but they have a more positive mindset regarding Nevada’s economy.
  • Over the past year, 42.6 percent of respondents increased business sales and revenues, and roughly 1 in 3 reported increased profitability.
  • More than 80 percent of small businesses experienced supply-chain challenges or delays in 2021, and the majority expect these issues to continue to impact their businesses during 2022.
  • Overwhelmingly, hiring and retaining quality workers is the single most important challenge that small businesses face. This year, 37.7 percent of respondents indicated this as a top challenge, up more than 16 percent from 2021, and exceeding the previous high of 35.3 percent in 2020.
  • Businesses indicated education funding will be a priority in Nevada’s 2023 legislative session.
  • Housing affordability is expected to worsen and remain a concern for businesses as interest rates continue to rise. More than 42.6 percent are very concerned with housing affordability and nearly 1 in 4 small businesses are moderately concerned (23.8 percent).
  • Of small businesses that felt they were not yet operating at pre-COVID-19 levels, most predicted it would take about two years for their business to return to pre-pandemic levels.

“Nevada State Bank is happy to present this annual survey as a resource for our clients, our business community, and Nevada decision makers,” said Shirey. “I hope the data and insights provided here will help business leaders with strategic planning and decision making over the coming months and years.”  

To download a copy of Nevada State Bank’s 2022 Small Business Survey report, please visit www.NevadaSmallBusiness.com/survey.

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank. Nevada State Bank is a division of Zions Bancorporation, N.A. Member FDIC