Small businesses are disproportionately affected by inflation, even though they create nearly two-thirds of new jobs in the workforce and account for 44% of US economic activity.
You only have to look at your grocery bill to know that inflation has been hitting hard – and small business owners are among those feeling the effects the most. Whether it’s supply chain issues or increased employee wages, a majority of small business owners reported at least a 20% increase in costs for supplies and services.
Small business owners are essentially the shock absorbers of the economy. They typically take a hit when inflation occurs since they often don’t have the forecasting resources to predict inflationary impacts. This hurts their profitability.
However, there may be good news on the horizon. Research has shown that prices are estimated to go down or level out in 2023. In the meantime, resources and tips are available to help small business owners, like this article with six tips to protect your business from inﬂation pressure.
Ascendus believes in the power of small businesses, and we are here to support you while navigating economic ups and downs. View our resources and products for information and ﬁnancing opportunities to help your small business thrive, or view current upcoming grants and resources below.