People walk by a sign that reads,"support a small business" outside of a store in Chelsea on March 21, 2021 in New York City.
To cope with higher prices, about 7 in 10 businesses said they were raising costs for consumers. On top of that, nearly half – 46% – reported taking out a loan in order to cover higher costs, while about 35% have cut payroll. Small business owners are also increasingly uneasy about the economic outlook. About 88% of owners expressed concern about the U.S. entering an economic downturn in the next year, with 54% saying they are "very concerned." The majority of small business owners believe the economy is either in "somewhat poor" or "very poor" health.
Still, when asked to choose between reducing inflation or avoiding an economic downturn, a majority – 59% – said the priority now should be combating higher prices, while 41% preferredShoppers walk through the milk and cream section of a supermarket in Montebello, California, on August 23, 2022.Despite the headwinds, small businesses said they remain relatively optimistic about their operations and expectations for the future. About 66.
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