Inflation, Burnout Among the Biggest Challenges Faced by Small Business Owners: Investigation

Capital One announced the results of a small business survey on Wednesday. According to the survey, 48% of small business owners are concerned about inflation and 42% experienced burnout last month.

The survey was conducted from March 25th to March 30th, 2022, with 1,200 small business owners and 300 car dealership owners. SMEs are defined as companies with total annual revenues of less than $ 20 million.

according to Capital One Survey, 71% of small business owners show that inflation is having a negative impact on their business, and 77% are worried about the lasting impact. These effects come in the form of lower sales and higher product costs.


Source: Capital One

Correspondingly, small business owners are taking preemptive action. A total of 27% showed that they had accumulated cash reserves, 23% raised prices preemptively, and 21% bought more inventories.

John and Kendal Antonelli, co-founders of the Antonelli cheese shop in New York, said: ZDNet.. “Furthermore, conversations about the impending recession potential from late 2022 to 2023 will begin to permeate and pause in deciding when and how to invest in a growing business. We continue to be our clients. Dedicated to serving the base and meeting the needs of cheese lovers across the country

Inflation in March was measured at 8.5%, a 40-year high. This means that many Americans are facing rising prices for necessary commodities such as food, clothing and gas. According to the Federal Reserve Board, consumer spending (PCE) prices (purchasing including food, clothing and housing) were up 6.6% from last year.

To bring inflation back to control, the Fed unanimously agreed to raise its benchmark fed funds rate by 50 basis points. This means that all loan rates such as credit lines, credit cards and mortgages will be higher. But that also means that you will earn more interest from your savings account balance.

In addition to inflation, “mass layoffs” have left their mark on SMEs.according to US Bureau of Labor Statistics787,000 people quit their jobs in March.

However, according to a Capital One survey, 76% of participants say they are confident that they will be able to fill the positions they are looking for within the next six months. Millennial business owners are 46% more likely than other small business owners to raise wages to attract talent, only 16% of business owners.

Wages are rising at the fastest pace in recent years, according to Federal Reserve Chairman Jerome Powell. Many workers are demanding higher wages to keep up with rising prices and living costs.

24% of small business owners experience burnout by running a business during a pandemic, coupled with Russia’s invasion of Ukraine and the recent blockade of COVID in China putting further pressure on the supply chain. It’s no wonder it showed that it was. In addition, 60% of small business owners feel that they are declining, and 58% are always worried about the finances of their business.


Source: Capital One

“We need to set a lot of deliberate boundaries,” said Camille Padilla, co-founder of VODIUM, in a webinar of Capital One’s SME survey results. To avoid burnout, it is important to set a line between personal life and work.

There are days when there are no meetings in VODIUM. According to Padilla, the company is also paying attention to how to get tasks on someone’s radar by keeping them out of the way with Slack messages, text messages, and email. VODIUM puts the mental health of its employees first.

Taking care of employees is important. According to the Capital One Panel, childcare offerings, among others, will greatly help some employees avoid burnout.

“Like everything else in life, it’s all about balance,” said Stephen Tripoli, co-founder and co-owner of Fichi. ZDNet.. “Last month I had two 16-hour work days, more than 12 days. If I have the opportunity to relax, I’ll do my best not to be offended.”

Despite these stressful economic conditions, the survey also found that 90% of small business owners are confident that they will run their businesses within the next six months. However, only 43% said they were in good or good business condition.

“Most business owners feel as motivated to grow their businesses today as they did before the pandemic. Despite major headwinds from inflation, supply chain disruptions and labor issues. It’s encouraging to see this optimism, which is a testament to the resilience and ingenuity of the community, “Jenflin, head of the Capital One Small Business Bank, said in a statement.

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