Despite these most challenging times, small business owners and entrepreneurs continue to face down those challenges and are remaining optimistic for the near future. As holiday retail numbers continue to look promising, it is the spirit of those in the trenches that continues to inspire and breed that optimism. In a recently released research and survey report, the US Chamber of Commerce, along with MetLife, has uncovered the current challenges along with that current optimism. The following is taken directly from that report:
- Hiring and investment plans, in particular, reveal small businesses’ growing optimism. About two in five (38%) small business owners say they plan to increase staffing levels, while 42% say they plan to invest in their business in the coming year—increases of 10 and 13 percentage points, respectively, from 2021 Q3.
- As small businesses face the future, they see many challenges. A quarter (26%) of small business owners say the biggest challenge they expect to face in a post-pandemic world is revenue, with inflation (23%) and COVID-19 compliance (21%) seen as other top issues.
- Most small businesses say inflation is a concern and that their most common way of dealing with inflation is raising the prices they charge customers. Three in four (74%) small business owners are concerned about the impact of inflation on their business, and about as many (71%) say rising prices have had a significant impact on their business in the past year. Those who feel the impact of rising prices see this impact most on the costs of goods and supplies (62%). To manage higher costs caused by inflation, three in five (63%) small businesses say they have increased the prices of their products or services in the past year. Although raising prices is popular, nearly half (45%) have taken out a loan, while 41% say they have decreased staff.
- Most small businesses say their supply chains have been disrupted by the pandemic and worker shortages. Sixty-one percent of small businesses say the COVID-19 pandemic has dramatically disrupted their supply chain and 55% say worker shortages have done the same. As a result, 63% say they have had to alter their supply chains in the past six months and nearly half (47%) say these disruptions make it difficult to keep up with customer demand.
- Most small businesses say their supply chains have been disrupted by the pandemic and worker shortages. Sixty-one percent of small businesses say the COVID-19 pandemic has dramatically disrupted their supply chain and 55% say worker shortages have done the same. As a result, 63% say they have had to alter their supply chains in the past six months and nearly half (47%) say these disruptions make it difficult to keep up with customer demand.
-Written by Kevin Sawyer
