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Source : US Chamber of Commerce
December 20, 2021
Author : Alex Bustillos
The US Chamber of Commerce’s quarterly Small Business Index shows supply chain and inflation as key issues facing small businesses.
While optimism is higher among small business owners than ever before during the coronavirus pandemic, it’s not all peaches and cream.
The Small Business Index survey was conducted between October 13 and October 27, 2021. It is critical to note that the World Health Organization did not identify the Omnicron variant until the 24th of November, so optimism levels are likely to have dropped as local, state and federal authorities eye new restrictions that could affect businesses.
Most small businesses, about 74 percent, say that the impact of inflation on their business is their top concern, and 71 percent say that rising prices have significantly impacted their business in 2021.
63 percent of small businesses say that they have increased the prices of their products or services due to inflation, 41 percent say they have decreased their staff as a way of managing inflation-related cost increases, and 45 percent say they have even taken out a loan to cover higher costs due to inflations.
Supply chain issues have similarly affected small businesses at high rates. Sixty three percent of small businesses said that they have had to alter their business supply chain in the past six months and 61 percent said their business supply chain has been dramatically disrupted or affected due to the pandemic.
Additionally, 55 percent of small businesses say their supply chain has been dramatically disrupted or affected by worker shortages while a whopping 47 percent said they are not able to keep up with customer demand due to disruptions to their supply chain.
The Small Business Index contains a multitude of insights into the small business economy. The entire report can be found here.