Most people have realized that the price of everyday things has increased dramatically. Some of the people most affected by the sudden spike in prices are the owners of small businesses. In a recent study done by MetLife and US Chamber Small Business Index it was found that one half (50%) of small business owners have stated that inflation is the largest challenge facing small business owners and nine out of ten (90%) are concerned about the impacts of inflation on their businesses. 

As of July inflation rates are the highest they have been since 1982 and that has created disadvantages for many small businesses when competing with well established chains. Owners are experiencing an increase in the price of their materials and in order to maintain profits they have been forced to find a solution. Additionally, 64% of owners have found that they are unable to acquire the items they need or complete the service they offer. As a result, 31% have reported being forced to stop the sale of specific products.

In order to combat these challenges owners have found a variety of solutions. In fact, only 20% of business owners reported not raising their prices to compensate for inflation; which comes with the risk of losing customers. Owners also are trying to cut overhead expenses by reducing inventory, stopping marketing, etc. 

The seemingly inevitable outcome of inflation is a smaller profit which limits the expansion of the business and decreases the quality of product a business is able to deliver to its customers. 

Overall, small businesses are being forced to make sacrifices due to the rising prices in almost all aspects of their business. Perhaps next time you look to buy something consider supporting a small business.