Inflation and Rising Prices Impacting Small Businesses

Small business operators typically rely on the holidays for key revenue but inflation could make that more difficult this holiday season, according to the quarterly MetLife and U.S. Chamber of Commerce Small Business Index.

Inflation has been a top challenge for business owners for four straight quarters. More than half (53%) of small businesses now say inflation is the biggest challenge for small business owners, a 30-percentage point increase from this time last year. Four out of five (83%) say rising prices have had a significant impact on their business this year.

“This quarter, small business owners did not see any improvement in the economic landscape. Although their own business may be doing okay, their confidence remains shaken,” said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce.

Seven in ten (69%) small businesses say they are raising prices in response to inflation this holiday season. Meanwhile, 61% report expecting less revenue than usual this holiday season because of inflation. Although concern over supply chain issues has cooled, 61% of small businesses say they expect supply chain disruptions will make it difficult to manage the holidays.

The quarterly Index is an online survey of 750 small business owners and decision makers.

The Q4 2022 survey was conducted October 11-27, 2022.