The launch of the vaccination program and the opening of many industries have made optimism faced by small business communities in the United States. But this optimism has been damaged by many small businesses in recent months.
Because inflation surpasses demand supply Among the products and services, the supply is limited, but the demand is still high. The price rises to a limited supply.
Since it requires greater funds to purchase the same item, it is often influenced by inflation by reducing the purchase power of money.
The report is displayed The annual inflation rate has reached a maximum of 4.4%of the last 30 years.
Small business owners who are struggling with inflation
Many small businesses are currently struggling with inflation. Last publication of Goldman Sachs ’10, 000 small business report 86%of the owners of small business owners have been struggling with inflation.
The survey says it ruins small companies with high inflation pressure, and 84%of the owners of small business owners say the operating cost has increased. 74%of the survey respondents said that the financial health of the business was negative by inflation.
Small business optimism is falling to 7 months.
In October, as labor and supply shortages worsened, the optimism of small business owners fell to the lowest level of seven months. According to the National Federation of Independent Business (NFIB), small business trust fell to 0.8 points to 98.2 in October and the lowest level since March.
Most of the anger can not be operated at a maximum capacity because the business is not enough to get enough supply or materials on time. When you can receive supplies, business owners must pay a fairly high price due to the increase in supply competition.
Supply shortage is expected to continue, and it can be much more damage to small companies when heading for the vacation season.
William Dunkelberg, the chief economist of NFIB, says: «One of the biggest problems of small companies is that there is a lack of workers in the position and inventory that cannot be a problem at the end of the year.»
Biden Administration took measures to alleviate the affected supply chain. One of these steps was to work 24 hours a day in Southern California.
For some small business owners, that movement was too late. Thinking along this line is Salas, the hair stylist of South Nashville. Who said:
«I’m still having a hard time getting a product because of what’s happening in California. The price has risen for shampoo and product.»
Image: sedimentary phytos
