Small businesses remain optimistic despite inflation worries

Inflation worries and supply chain disruption are impacting 88% of small business owners, according to a new survey.

Bank of America’s 2022 Small Business Owner Report found that longer-term outlooks remain strong among the more than 1,000 business owners surveyed.

Operational challenges, including a shortfall in customers and price increases, were also identified respondents as factors impeding businesses across the country.

Inflation (80%), commodities prices (75%), and supply chain disruptions (64%) were identified as the primary reasons business owners were anxious about the overall economic outlook, while worries about international affairs (61%) rose sharply.

Yet small businesses remain optimistic about outlooks for the year, with 64% anticipating an increase in revenue, while three in five business owners believe their business has partially or fully recovered from the pandemic.

Driving this confidence was consumer spending, according to half of the respondents.

Elsewhere, the survey found that 70% of business owners plan to seek financing for their business during the coming year, while 26% plan to recruit for their business — the highest rate since the fall of 2018.

Business owners also reported being more reliant on technology and digital tools, while 44% plan to prioritize digital sales over brick and mortar.

Banking Exchange previously reported that more than 85% of small businesses are now using digital banking tools, also based on a Bank of America survey.

Sharon Miller, president of small business and head of speciality banking and lending at Bank of America said: “Small business owners are betting on their businesses and seeking opportunities for expansion, despite concerns about the economy.

“While facing a highly challenging environment, entrepreneurs are demonstrating resilience and adaptability as they focus on the operational and strategic decisions that directly impact their customers and employees,” she added.