Comment on National Survey About Inflation’s Effect on Small Business

Date: July 19, 2022

"If this trend continues over the next several months, it will be hard for many mom-and-pop small businesses to even survive."

FOR IMMEDIATE RELEASE 
Contact: John Reynolds, Minnesota State Director, [email protected]
or Tony Malandra, Senior Media Manager, [email protected]  

ST. PAUL, MN., July 19, 2022—From John Reynolds, Minnesota state director for the National Federation of Independent Business (NFIB) on today’s release of NFIB’s special survey on inflation’s effect on small businesses. The national survey, not broken down by state, was drawn from a random sample of NFIB’s membership. Nearly 75% of NFIB-member small businesses have nine or fewer employees.

“These inflation numbers are staggering and unsustainable for small business. If this trend continues over the next several months, it will be hard for many mom-and-pop small businesses to even survive.”

From NFIB Holly Wade, Executive Director of NFIB’s Research Foundation

“Inflation has set in on Main Street and owners across the country continue to make business decisions in response. As owners manage the highest inflation rate in decades, they are also managing an ongoing worker shortage and supply chain disruptions, which is hurting their businesses and consumers.”

Highlights from the Survey

  • Over three-quarters (79%) of small employers reported that rising “fuel (gasoline, diesel, fuel oil, etc.)” prices are a substantial contributor to higher costs.

  • Seventy-two percent of small employers reported “inventory, supplies, and materials” as being a substantial contributor to higher costs.

  • Under a third (31%) of small employers reported “labor” being a substantial contributor to higher costs.

  • Four percent of employers report “rent” being a substantial contributor.

  • Eighty-six percent of small employers are increasing the prices of their goods or services. Of those increasing prices, 7% reported that the effort was absorbing all their total cost increases, 36% reported most, about half (47%) reported some, and 9% reported a little.

  • Eighty-two percent of small employers absorb costs through lower business earnings to some degree. Nine percent reported this absorbing all their total cost increases, 28% most, 50% some, and 11% a little.

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For almost 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

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www.nfib.com/mn
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