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Inflation & the Economy Part 2: Business Impact and Resolve
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December 22, 2022
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Inflation & the Economy Part 2: Business Impact and Resolve
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Key Findings

  • 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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Inflation & the Economy Part 1: The Economy, Inflation and Pricing
Inflation & the Economy Part 1: The Economy, Inflation and Pricing
Getting customers remains the top challenge for small business owners but cash flow, inflation and supply chain disruptions are growing concerns. 30.5% list inflation as a top concern and another 62.5% are generally concerned as they keep an eye on rising prices.
The Megaphone of Main Street: Inflation & the Economy
The Megaphone of Main Street: Inflation & the Economy
This “Megaphone of Main Street” data report by SCORE examines how small businesses are being impacted by the current economy and inflation, how turbulent economic factors have affected their profitability, and what they have done to protect their businesses in response.
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