The MetLife & U.S. Chamber of Commerce Small Business Index slid nearly 7 points over the past quarter, wiping out its postelection gains. 

Small-business owners still think the economy is on pretty solid ground, but they’re feeling uncertain. Hence the gloom. 

It’s been a quiet March for René Hidalgo, owner of Don Pepe Mexican restaurant in Houston. And he thinks that has a lot to do with the fact that he raised prices this year because his costs keep going up.

“Sometimes people comment, ‘Whoa, that’s a little too much for a breakfast taco or breakfast plate.’ But I have no option. You know, we have to pay for employees. You know, all our other bills, rent, electricity bill and all that,” Hidalgo said.

And rising food costs — especially eggs.  

Instead of raising prices, some business owners are just taking the hit. 

Janessa Purney owns Erskine’s Grain & Garden, a farm supply store in Chester, Vermont. She recently ordered wood shavings — for animal bedding — from Canada, and her supplier crossed the border right before President Donald Trump rescinded his 25% tariffs.

“I paid 20% extra. They swallowed 5% for me. So that kind of thing is really disconcerting. Thinking about those types of things are making it hard to plan cash flow,” she said.

The Chamber of Commerce survey found a sharp uptick in the number of business owners who feel concerned about their future revenue.

“We know that that revenue, depending on how much of a chunk is taken out from inflation, is really what is going to result in growth, stability or decline,” said Tom Sullivan, the chamber’s vice president of small business policy. 

It’ll determine, he said, whether businesses feel like they can hire more workers or make capital investments. But right now, what he’s seeing “are small business owners hitting the pause button on growth plans for 2026 and beyond.”

In Houston, René Hidalgo hopes business picks up in the next few months. Because right now, he’s at the front counter, seven days a week.

“And I’m working here since opening in the morning till closing because I cannot afford to have another person, you know, like a manager or something,” he said.

If business picked up, Hidalgo could hire someone and take some time off.