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Inflation Bites Small Business: 70% Cite It as Top Worry
21 Nov
Summary
- Seven out of ten small businesses identify inflation as their primary concern.
- Nearly 40% of small businesses are reevaluating cash flow and spending due to price pressures.
- Despite challenges, 74% of small businesses maintain a positive outlook for the coming year.
Small businesses are overwhelmingly concerned about inflation, with seven out of ten citing it as their foremost worry for the upcoming period. This persistent price pressure has compelled nearly four out of ten businesses to reassess their cash flow and spending strategies for the year ahead. Despite these challenges, a strong majority, 74%, of small business owners are approaching the next twelve months with a positive outlook.
Many entrepreneurs anticipate revenue growth and are actively planning for business expansion and new hires. Over half of small businesses aim to grow, and almost half intend to recruit new staff. This forward-looking approach is supported by plans to secure financing through various channels, including business credit cards, personal savings, and traditional bank loans.
The economic landscape remains complex, with inflation continuing to exceed federal targets. Gauging these price pressures has been difficult, with economic reports facing delays. While the consumer price index saw a slight increase, some economists predict that inflation may not significantly slow until mid-2026, creating an ongoing challenge for businesses.
