51% Of SMBs Concerned Inflation Could Cause Shutdowns

By Anna Peel. Originally published at ValueWalk.

Results from Alignable’s Small Business Inflation Poll have just been released, showing that 51% of SMBs are concerned inflation could force them to close their businesses within the next six months. The survey was conducted from 5/7/22 to 5/22/22 among 5,268 randomly selected SMB owners.

SMBs Concerned Inflation Could Cause Shutdowns

Here are more highlights:

Focusing on 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,” and
- 23% are “somewhat concerned.”

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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%). In Canada, AB (61%) & ON (54%) top the list
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

Many quotes bringing these sentiments to life are featured, as well. Here are a few:

“It’s just a matter of time before we have no working capital left to operate with. I’m about to lose everything.”
“It’s just too hard to keep going. Shutting down later this month or next.”
“Fuel costs might be the death of my business.”
“I’ve weathered four recessions. I’ll keep going. Just means stress and poverty for my family.”