Small businesses definitely impact our economy, but the changes in the economic climate over the last few years has taken a toll on these businesses as well.  According to a recent study of small business owners by the US Chamber of Commerce, inflation and supply chain issues are the top challenges entrepreneurs face today.  Based on their survey, conducted in January of 2022, 85% of small business owners expressed they are concerned about the impact of inflation on their business, with one third rating inflation as their biggest concern. 

These concerns are forcing small businesses to find ways to deal with increased prices and supply chain problems.  This is causing many to react by raising pricing and finding alternatives to their current suppliers.  In addition, spending and investing alternatives must be considered.

Small businesses must evaluate their operations and make sure everything aligns with their strategy, so this may mean it’s time to revisit your business plan if you have not already done so.  Some of the processes and procedures may be outdated. 

Bank of America releases a Small Business Owners Report every year.  In this year’s 10th anniversary addition, it discusses more of the economic concerns but also provides some marketing insights.  For example, just ten years ago businesses felt news from social media/online media outlets had very little impact (17%) on their business compared to 61% in 2022.  Now take a look at how marketing tools have changed in the last 10 years.

In order to continue to operate in this environment small business owners must adapt.  This means watching what is going on and when needed, change the plan, not the goal.