MIDDLETOWN, R.I. (WPRI) — Patti Watson took her eye for design and turned it into a business in 2004.

But between supply chain issues, inflation and hiring challenges, her interior design company has been struggling to get by.

Watson tells 12 News that, in some cases, her business works with developers from the ground up to design a home. These projects are made much more difficult when contractors can’t get the supplies they need to construct the home and she can’t find the products she needs for the interior.

“Fabrics, furnishes, finishings … the foam that goes into cushions, all of these things not only have long lead times, but a lot of uncertainty,” Watson explained.

And she isn’t alone.

New data published by Goldman Sachs 10,000 Small Business Voices suggests that 91% of small business owners have been negatively impacted by supply chain issues, inflation and workforce shortages.

“Small business owners are stuck between a rock and a hard place as inflation and an uneven economic recovery are impacting every part of our businesses, with no end in sight,” Khari Parker, a business owner and member of Goldman Sachs 10,000 Small Business Voices said.

In Watson’s case, these challenges are prolonging her projects and ultimately costing the homeowners more money down the line.

The data also indicates that small business owners are concerned about employee retention, with 70% of employers worried that their workers will leave for a higher-paying job at a larger company.

That concern isn’t lost on Watson. She tells 12 News that she decided earlier this year to raise her wages to stay competitive with big businesses.

“We did increase our compensation package and our benefits package significantly this January, and that was really to retain the talent that we have and to attract more talent as we grow,” she explained.

The health of the economy is also top of mind for small business owners. The data reveals 56% of small business owners believe the economy has worsened since the start of the year, and 88% claim the pressures of inflation have increased.

“Small businesses are sending a clear signal that the economy and the challenges they face – like inflation, workforce, supply chain and energy costs – are going from bad to worse,” said Joe Wall, national director of Goldman Sachs 10,000 Small Businesses Voices.

The data states that 86% of small business owners believe the federal government should do more to level the playing field so they can better compete with larger companies. In addition, 93% of small business owners believe the federal government should do more to tailor programs and services to better reflect the realities and needs of small businesses.