How is inflation affecting small businesses?

This story version has been formatted as an on-air script for broadcast outlets. See the original research story here.

GOOD NEWS RELATED TO THE ECONOMY: MORE THAN THREE-QUARTERS OF SMALL BUSINESS OWNERS BELIEVE THAT THEIR COMPANY IS EQUIPPED TO HANDLE ANY UPCOMING ECONOMIC INSTABILITY, ACCORDING TO NEW RESEARCH.

CONDUCTED BY ONEPOLL ON BEHALF OF MELIO, THE SURVEY ASKED 1,000 SMALL BUSINESS OWNERS ABOUT INFLATION AND THE IMPACT OF THE ROCKY ECONOMIC CLIMATE.

THOUGH ALMOST HALF (48%) OF RESPONDENTS HAVE RAISED THEIR PRICES BY AN AVERAGE OF 7% OVER THE LAST SIX MONTHS, THOSE THAT DID ARE STILL REPORTING AN INCREASE IN REPEAT BUSINESS (66%), SALES (63%) AND NUMBER OF NEW CLIENTS (56%).

BUT THE ECONOMY IS STILL A CONCERN. INCREASED INTEREST RATES (61%), INFLATION (59%) AND A LOOMING RECESSION (44%) ARE SMALL BUSINESS OWNERS’ TOP ECONOMIC CONCERNS FOR THE REMAINDER OF 2023.

TO COMBAT THAT, SMALL BUSINESS OWNERS SAY THEY’VE MADE SOME CHANGES THIS YEAR, INCLUDING INCREASED THEIR ADVERTISING AND MARKETING EFFORTS (66%), INCREASED THEIR DIGITAL PRESENCE (58%) AND STARTED SELLING PRODUCTS ONLINE (52%).

Survey methodology:

This random double-opt-in survey of 1,000 small business owners (with a statistically significant amount of African American respondents, Hispanic/Latino respondents and women small business owners) was commissioned by Melio between Sept. 6 and Sept. 13, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).