Study Finds More Than Half of Small Business Owners Fear Closing
Rampant inflation is having a dramatic impact on small businesses and more than half surveyed say it could even force them to close their businesses, according to Alignable's Small Business Inflation Poll that was just released.
The survey was conducted during May among more than 5,000 randomly selected small business owners. 51% of small business owners are concerned inflation could force them to close their businesses within the next six months.
Of the 51% who are most concerned:
- 1% have already closed due to inflation
- 1% plan to shutter by the end of June
- 26% are "highly concerned”
- 23% are "somewhat concerned"
Other findings from the survey:
- Another 11% are "slightly concerned," 17% say it’s hard to say either way
- Only 21% say they're "not at all concerned."
- 72% of restaurant owners are worried: 49% are highly concerned
- 60% of minority owners & 53% of women running their own companies are nervous about inflation, too
- States with the most-worried small business owners include MD (58%), CT (57%), TN (57%), CO (54%), MA (54%) and WA (54%).
- Other poll results show additional economic factors magnifying concerns:
- 37% have only one month or less of cash reserves
- 44% are earning 50% or less of their pre-Covid monthly revenues
- 49% say their costs have increased by more than 25%, but only 16% are able pass those expenses onto customers
- Rent has spiked for 52% of those polled (up 6% from 46% in April)
- 60% say inflation has been worse than Covid
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