A new poll shows the extent inflation has had on small businesses. The latest CNBC/SurveyMonkey Small Business Survey confirms that a growing number of small business owners are rising prices to offset increases in supply costs.
Inflation “Tipping Point” Reached by Small Business Owners
The overall CNBC/SurveyMonkey Small Business Confidence Index score hovers around all-time lows, though remains unchanged from Q4 2021.
The survey found that small business owners principal concerns about inflation are centered on supply chain issues. 74% of small business owners who say they are experiencing rising costs of supply, say costs have remained the same since the last quarter of 2021. A similar number (75%) believe these issues are likely to persist for another six months from now.
Lack of Faith in Policymakers
The study also found that there is a general lack of faith in policymakers, with 71% of the small business owners surveyed citing a lack of confidence in the Federal Reserve’s ability to control inflation.
The findings of the latest CNBC/SurveyMonkey Small Business Survey provide important insight into the small business community in the United States and what business owners are deeming most problematic as we progress through 2022. It also reveals what small businesses are going to help offset rising costs.
No End in Sight
Laura Wronski, senior manager of research science at Momentive, which conducts the survey for CNBC, commented on the findings:
“The underlying problem with inflation is that there’s no end in sight. We’ve become accustomed to rising and falling Covid waves, and businesses have had the time to rewrite their playbooks to accommodate. But no one knows how quickly or to what degree inflation will continue to rise, so that unpredictability is inducing some unease.”
Small Business Deals
To offset inflation, a growing number of small businesses are passing on rising costs of inputs to their customers, the survey found.
Covid-19-issues are also negatively impacting small businesses. Two-thirds of small business owners say they have had problems with too many workers being unable to work after testing positive for Covid.
Overall, inflation remains the biggest concern, with 33% of small business owners citing inflation has their primary worry. This was followed with supply chain disruptions (23%), and Covid-19 (20%). Meanwhile, labor shortage remains an issue, with 12% of the small business owners who were surveyed saying a shortage of workers is their leading concern.