Main Street small and medium-sized businesses (SMBs) believe that inflation and COVID-19-related issues are their biggest challenge, according to the Main Street Economic Health Survey, a collaboration of PYMNTS and Melio that poll of 532 US SMBs.
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These businesses are slightly more concerned about inflation than the challenges associated with COVID-19, with 54% saying inflation is a challenge and 51% saying both of the challenges associated with COVID-19.
However, there are some differences among SMBs with different sales profiles, industry and revenue segments.
SMBs that typically sell in a physical store are more concerned about inflation than COVID-19-related issues, while most online sellers are slightly more concerned about COVID-19-related issues.
Those in the retail trade, construction or utility, and professional services are more concerned about inflation, while SMBs in personal and consumer services and food, entertainment and accommodation are more concerned about COVID-related issues. -19.
Businesses with the largest size in terms of revenue are more concerned about inflation, with only the smallest category (SMBs earning $ 250,000 or less) being more concerned about the issues. associated with COVID-19.
Two other major concerns about the current market environment were mentioned by more than 4 in 10 SMBs: uncertainty about economic conditions (46%) and difficulty in hiring employees (41%).
SMBs mitigate these challenges in many ways.
To compensate for inflationary pressures and the additional costs associated with hiring new employees and wage increases, 22% have raised their prices over the past three months.
To handle the labor shortage, 43% require their staff to do more work, 42% pay more than their employees, 31% reduce the amount of work they can take on and 22% are implemented technology that helps employees be more productive.
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