Small Business in 2022 — It’s a Struggle

Next Insurance did a survey of 1,000 small businesses and what it found is scary. These businesses are really struggling by the current state of the nation’s economy and inflation.

It’s so bad that a high percentage — 35% — are thinking of permanently closing their doors.

They’ve also been hit hard for two-years by the restriction’s government put on them because of COVID. The owners surveyed say they now work a lot more hours and many of the duties they are performing on a daily basis used to be done by others.

30% say employee turnover is high

28% say they’ve been ghosted by employees and potential employees

The average pay offered is $24 per hour — $2 higher than 2 years ago

Just 8% of businesses pay under $10 an hour

Another struggle is how they’ve had to raise prices.

Next Insurance spokeswoman, Suzanne DuFore said supply-chain issues and inflation have caused price hikes for 91% of the small businesses. Another reason for price hikes is a 40% jump in the cost of materials over the last six months, and 80% of small businesses have seen shipping delays and big raises in the cost of shipping.

“This substantial inflation is rapidly becoming a crisis for U.S. small businesses, which operate on low-profit margins and have less flexibility than larger companies,” she said. “Small businesses are often the canary in the coalmine for our economy—if they’re feeling the intense stress and pressure from these major societal trends that show no signs of slowing down, it’s critical for us as consumers and leaders in financial services to be ready to help them out in any way we can.”

Source link: Insurance Journal — https://bit.ly/3vLnpdt