- Many small business owners (62.7%) have seen their profits decline over the past six months. Only 15.5% reported profits were higher than expected.
- Profits are declining because sales have declined for 58.6% of small business owners surveyed, and expenses have risen for 59.5%, compared to six months ago.
- Vendors and suppliers are charging 65.7% of business owners more than they were six months ago. More than half of business owners (53.5%) now pay more for utilities (including gas).
- Rising costs cause cash flow problems for one-third (35.9%) of the small business owners surveyed.
- To improve profitability, some small business owners are seeking more profitable clients, some are adjusting their product mix or improving technology, most are raising prices.
- 54.8% of business owners found it necessary to increase prices to match price increases in the market. All but 7.8% of those surveyed have raised prices by 5%-20%, with an average increase of 11%.
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