Small Businesses, Big Problems

Small businesses can offer perks that many larger companies can’t. Shutterstock

America’s small businesses can’t catch a break. After two years of shutdowns and restrictions due to the COVID-19 pandemic, they’re straining to keep up with price increases without losing their customers to larger competitors. They’re struggling to keep positions filled as competition for workers remains tough and the labor market tight. Below are troubling, broad areas in which small businesses are most under pressure today.

Many factors can interfere with a small business, including:

• Inflation

Inflation can have a significant impact on small businesses. Rising costs of goods and services are squeezing profit margins. Many small businesses have less leverage to negotiate prices than larger companies.