Small Business Concerns Around Inflation Grow as Prices Soar and Economic Instability Continues
WASHINGTON, April 12, 2022 /PRNewswire/ — Nearly one in three (30.5%) business owners report feeling extremely worried about inflation and rank it as a top business concern and another 62.5% say they are generally concerned about inflation and are keeping an eye on rising prices, according to new survey data from SCORE, mentors to America’s small businesses and a resource partner of the U.S. Small Business Administration.
SCORE’s Spring 2022 Megaphone of Mainstreet: Inflation & the Economy report surveyed more than 1,000 small business owners on how they felt about the current economy and inflation. Only 7% of small businesses are not troubled about inflation impacting their company; meaning there is a general consensus of concern regarding the cost of rising goods and services.
While finding customers remains a serious problem for small business owners (51.8%), cash flow (35.9%), inflation (33.9%) and supply chain disruptions (30%) are all rapidly growing issues as the economy remains tumultuous.
Small business owners are feeling the impact of these top concerns:
SCORE East Central Iowa client Aaron Mulherin, owner of AM Glass Repair, says that he is slammed with 12-15% price increases on materials every four to six weeks. “Due to these price increases, AM Glass Repair is forced to purchase materials more than six months ahead of time to lock in lower prices, which causes cash flow issues,” Mulherin explains.
Dennis Ittenbach, owner of H.O.P.E. Life, Lymphedema and Rehab Center, says prices for services and supplies have gone up at a surprising rate, even though the reimbursement from third party payers in the medical field have gone down. “Because I am a health care provider and 80% of my patients are Medicare or Medicare alternative plan patients, I’m not able to adjust my prices,” says Ittenbach. “In fact, over the last year we’ve had a reduction in our reimbursement which significantly affected our profit and is proving unsustainable.”
How SCORE can help:
Due to continued instability, three out of four small business owners (76.4%) report having mixed feelings about the economy overall and are uncertain how to feel.
“Small business owners have been inundated with curve balls throughout the past two years with no signs of slowing down,” according to SCORE Vice President of External Relations Betsy Dougert. “We want entrepreneurs to know they are not on this journey alone. SCORE has a plethora of resources, including small business experts, to help them navigate challenges and thrive.”
Visit SCORE.org to learn how SCORE supports small businesses during difficult times, including 24/7 expert mentoring, resilience training and on-demand educational resources.
Click here to download the full Megaphone of Main Street: Inflation & the Economy data report and here for the full infographic.
Since 1964, SCORE has helped 11 million entrepreneurs start or grow a business. SCORE’s 10,000 volunteers provide free mentoring, workshops and educational services to 1,500+ communities nationwide, creating 25,084 new businesses and 71,475 non-owner jobs in 2021 alone. Visit SCORE at www.score.org. Follow @SCOREMentors on Facebook, Twitter and LinkedIn.
Funded [in part] through a Cooperative Agreement with the U.S. Small Business Administration.
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