Survey: How Inflation is Hurting Small Businesses
The concern over inflation amongst small businesses has reached the highest levels in over a year, according to new data from the US Chamber of Commerce and Metlife. A report from the two groups shows the concern being higher this quarter of 2022 than in quarter three of 2021 when it was at its previous height.
The two groups have outlined five facts to show just how badly the current inflation levels are negatively impacting businesses. The top finding shows that inflation is the primary concern among small businesses with half of those polled saying inflation is the "top challenge" facing all small employers. The attitude toward a brighter future is not great as the report, found most small businesses (71%) anticipate inflation will get worse.
The costs of goods and utility bills are impacting the bottom lines for all businesses but particularly the smaller owners. Most of those surveyed say the cost of goods and supplies (65%) and utilities or fuel (50%) are where they have seen the most impact.
To keep up with the surge in inflation, many small business owners have had to raise prices while others say they have taken out a loan, reduced staff, or reduced the quality of the products they supply.
The survey shows that over half (59%) of small businesses polled believe the priority right now should be reducing inflation with 41% believing the priority should be avoiding an economic downturn.