Inflation has taken hold of Main Street, with an increasing number of small business owners saying it will not relent over the next six months and raising prices to offset increases in the costs of supplies, according to the latest CNBC|SurveyMonkey Small Business Survey.
The CNBC/SurveyMonkey online poll was conducted January 24-30, 2022 among a national sample of 2,227 self-identified small business owners. Nana Joes Granola stocked up on ingredients and bought them at higher volumes to get lower pricing as demand outstripped supply and logistics issues worsened. The loading up on inventory is "more of a stopgap right now," Pusateri said, but she expects it will probably become a long-term business issue. Her firm held $94,000 of inventory at the end of 2019, but by the end of last year, that had risen to $327,000.
It's not just an increase in input costs, but the magnitude of the increase which is walloping smaller companies. Eric Groves, co-founder and CEO at online small business platform Alignable, which has been, pointed to the percentage of businesses which indicate they are seeing the highest level of cost increases.
Small business owners tend to be optimistic by nature, but Alignable's data shows them more pessimistic now about their own recovery timelines. Last June, small business owners expected revenue to be back at pre-Covid levels midway through 2022. Now that has been pushed back by a full year to mid-2023.
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