What's Hot in Small Business – Chris Crum
Chris Crum writes for Small Business Resources about what's new for small business. Chris was a featured writer with the iEntry Network of B2B Publications where hundreds of publications linked to his articles including the Wall Street Journal, USA Today, LA Times and the New York Times.

NEXT Insurance Survey Looks at Frustrations of Small Business Owners

NEXT Insurance Survey Looks at Frustrations of Small Business Owners

NEXT Insurance shared results from a recent survey that it conducted among 1,000 small business owners. It found, overall, that business owners across the country are frustrated and stressed about inflation and the stage of the economy in general.

The survey, conducted in March, found that over a third of respondents had considered shutting their businesses down within the previous twelve months.

Concerns about the increased cost of materials, shipping delays, hiring issues, and employee retention have contributed to owners’ frustrations, leading many to put more strain on themselves.

"As prices continue to rise and supply chains continue to falter, many small business owners have been forced to work longer hours, raise prices, and even cut their own salaries just to stay afloat, our survey found," said Next’s Wil Chan in a blog post discussing the survey. "And a majority of small business owners believe the pain isn’t over."

Over two-thirds of small business owners who responded to the survey said rising material costs have had a moderate to significant impact on their business. Nearly four in 10 said they have had a significant impact. Just 13 percent considered themselves unaffected.

90 percent of business owners in the South claimed to be experiencing notable increases in the cost of raw materials compared to other regions. Only 79 percent in the West made this claim.

Eight in 10 business owners polled said they’ve been impacted by supply chain delays. One in four said they’ve suffered "significant impact" as a result. Only 12 percent said they were not concerned with delays.

Hiring issues continue to plague small businesses. According to the survey, half have experienced "new hire ghosting," which is when new employees stop showing up to work without giving any notice. About three in 10 businesses experience this every few months or more frequently, the survey found.

NEXT also found that over a third of small business owners feel that finding and keeping qualified employees is likely to get even more difficult over the next six to 12 months. To combat this, owners are paying on average $2 more per hour than they were two years ago. According to NEXT, 19 percent of owners were paying their employees $10/hour or less, and only eight percent pay that now. Businesses in the Midwest doubled their percentage of employees making over $21 per hour, according to NEXT.

As business owners’ frustrations continue, they are working longer hours themselves, while also taking smaller salaries. About half are working more hours, and a third are performing duties usually handled by other workers. About three in 10 have decreased their own salaries, according to the survey.

About 35 percent have increased prices to consumers, while 30 percent have cut "non-essential" business expenses. Twenty-eight percent have looked for cheaper alternatives to existing expenses.

Small business owner optimism for an economic recovery during the coming year is all over the map. While 34 percent are either "not very" or "not at all" optimistic, 29 percent are either "extremely" or "very" optimistic, and 37 percent fall somewhere in the middle.


Read other business articles