Page 26 - THE SOUTH CHINA BUSINESS JOURNAL
P. 26
C. TODAY
The latest MetLife and U.S. Chamber Small Business "Supply costs have increased at a rate beyond
Index found that inflation, revenue, and supply chain anything I could have expected," says Victoria Kidd,
issues are small businesses’ top concerns. owner of The Hideaway Café in Winchester, Virginia.
"We have incrementally raised prices several times
Inflation remains the single top concern among to keep up with the rapidly changing cost of goods.
small business owners according to a recent Even with the increases, we're barely breaking even."
report from the Chamber. At the same time, other
concerns including revenue, supply chain issues, 3. Rising Interest Rates LO CA L
rising interest rates, and access to capital are
viewed as second-tier challenges. S H O PRising interest rates are top-of-mind too, with 16%
Here are the top concerns of American small of small businesses saying rising interest rates
businesses according to the latest MetLife and U.S. are a top concern (up slightly from 14% in Q3). In
an attempt to tamper rapid inflation, the Federal
$Chamber Small Business Index. Reserve has been raising interest rates. But for small
business owners who often rely on credit and loans
1. Inflation to finance their business operations, rising interest
rates are pressing concern—they essentially increase
Inflation remains the number one concern for the cost of doing business.
small businesses by far, with more than half (53%)
of them saying inflation is the biggest challenge Professional service firms are the most concerned
they face. Inflation topped the list of challenges about rising interest rates, with 22% saying it is one
for the entirety of 2022 and is up a whopping of their biggest challenges.
30-percentage-points year-over-year.
4. Supply Chain
The Biggest Disruptions
Challenges Small Concerns over supply chain
Businesses Are Facing issues have cooled off
slightly, with just one
in five (20%) small businesses
citing supply chain issues as
a top challenge now (down
from 26% in Q3 2022).
Right Now By Thaddeus Swanek, Small businesses in the
Senior Writer and Editor, Strategic manufacturing sector are
Communications, U.S. Chamber of Commerce
most impacted by supply
chains issues (29% said it was
It doesn’t matter what size your small businesses a top issue), while services are the least impacted
or where it’s located: Inflation is the top concern (only 10% report supply chains as a top challenge).
for small businesses regardless of location, number
of employees, or sector. Small businesses of every 5. Access to Capital
size have developed a number of strategies for
dealing with inflation. Concern about access to financing has continued to
2. Revenue tick up over the last year, climbing from six percent
of small business owners saying it was a top concern
in the beginning of 2022 (Q1 2022) to 13% citing it as
After inflation, small businesses are concerned a top concern by the end of the year (Q4 2022).
about an array of second-tier challenges. But
prominent among them are two issues that are The size of the company has an impact on whether
related to higher inflation: revenue generation and finding a loan or credit is a top challenge. 15% of
rising interest rates. businesses with 1-4 employees said access to capital
was a challenge, while just 6% of small businesses
In the latest Index, 22% of small businesses with 20-500 employees said it was.
reported revenue generation as a top concern.
As the costs of supplies and labor rose due to Likewise, there was some regional variation. 18% of
inflation, small businesses struggled to generate Midwestern small businesses said access to capital
revenue. In Q4 2022, nearly 7 in 10 small business is a top challenge. While only 8% of small businesses
owners said they raised prices to cope with in the West said access to capital was one of their
rising inflation. top problems.
23 AMCHAM SOUTH CHINA
The latest MetLife and U.S. Chamber Small Business "Supply costs have increased at a rate beyond
Index found that inflation, revenue, and supply chain anything I could have expected," says Victoria Kidd,
issues are small businesses’ top concerns. owner of The Hideaway Café in Winchester, Virginia.
"We have incrementally raised prices several times
Inflation remains the single top concern among to keep up with the rapidly changing cost of goods.
small business owners according to a recent Even with the increases, we're barely breaking even."
report from the Chamber. At the same time, other
concerns including revenue, supply chain issues, 3. Rising Interest Rates LO CA L
rising interest rates, and access to capital are
viewed as second-tier challenges. S H O PRising interest rates are top-of-mind too, with 16%
Here are the top concerns of American small of small businesses saying rising interest rates
businesses according to the latest MetLife and U.S. are a top concern (up slightly from 14% in Q3). In
an attempt to tamper rapid inflation, the Federal
$Chamber Small Business Index. Reserve has been raising interest rates. But for small
business owners who often rely on credit and loans
1. Inflation to finance their business operations, rising interest
rates are pressing concern—they essentially increase
Inflation remains the number one concern for the cost of doing business.
small businesses by far, with more than half (53%)
of them saying inflation is the biggest challenge Professional service firms are the most concerned
they face. Inflation topped the list of challenges about rising interest rates, with 22% saying it is one
for the entirety of 2022 and is up a whopping of their biggest challenges.
30-percentage-points year-over-year.
4. Supply Chain
The Biggest Disruptions
Challenges Small Concerns over supply chain
Businesses Are Facing issues have cooled off
slightly, with just one
in five (20%) small businesses
citing supply chain issues as
a top challenge now (down
from 26% in Q3 2022).
Right Now By Thaddeus Swanek, Small businesses in the
Senior Writer and Editor, Strategic manufacturing sector are
Communications, U.S. Chamber of Commerce
most impacted by supply
chains issues (29% said it was
It doesn’t matter what size your small businesses a top issue), while services are the least impacted
or where it’s located: Inflation is the top concern (only 10% report supply chains as a top challenge).
for small businesses regardless of location, number
of employees, or sector. Small businesses of every 5. Access to Capital
size have developed a number of strategies for
dealing with inflation. Concern about access to financing has continued to
2. Revenue tick up over the last year, climbing from six percent
of small business owners saying it was a top concern
in the beginning of 2022 (Q1 2022) to 13% citing it as
After inflation, small businesses are concerned a top concern by the end of the year (Q4 2022).
about an array of second-tier challenges. But
prominent among them are two issues that are The size of the company has an impact on whether
related to higher inflation: revenue generation and finding a loan or credit is a top challenge. 15% of
rising interest rates. businesses with 1-4 employees said access to capital
was a challenge, while just 6% of small businesses
In the latest Index, 22% of small businesses with 20-500 employees said it was.
reported revenue generation as a top concern.
As the costs of supplies and labor rose due to Likewise, there was some regional variation. 18% of
inflation, small businesses struggled to generate Midwestern small businesses said access to capital
revenue. In Q4 2022, nearly 7 in 10 small business is a top challenge. While only 8% of small businesses
owners said they raised prices to cope with in the West said access to capital was one of their
rising inflation. top problems.
23 AMCHAM SOUTH CHINA
