A report recently released by Veeam B2B Payment Solutions company says that nearly 78% of the more than 800 small business owners in the U.S. are experiencing severe inflationary pressures, exacerbated by the labor shortage crisis and supply chain disruptions.
According to Veeam, 77. 6% of small business owners said they were experiencing inflationary pressure, 32.3% said they were experiencing it "all the time" and 45.3% said they were experiencing it "sometimes." The remaining 22.4%% said that they they didn’t have any inflationary pressure.
Of 77.6% of small businesses, 41.5% said they had experienced inflationary pressure in the last one to three months, while 23.5% had experienced it in the last four to six months and 10% in the last nine months.
However, not everything is as bad as it may seem. We think that the recovery will go faster compared to past episodes of inflation. We live in a global and interconnected world, so we need to use it to run a more economical business.
One of the reasonable approaches is to change suppliers and hire those with a different cost structure or alternative ways of doing business. Another approach is to optimize labor costs by hiring cheaper labor, in some cases outside the United States. With technologies like Zoom, business owners can communicate and coordinate through video conferencing with a more diverse and less expensive workforce.