In the past months, small business owners have expressed serious concerns over rising inflation, with one study suggesting this is the highest reading since 1981.
Over one-quarter of business owners believe inflation will be their biggest problem this year, which is a four per cent increase from last year.
According to a recent report, optimism amongst small business owners dropped in February to a one-year low.
This downward trend is due to concerns regarding rising inflation, that have caused owners to raise prices.
Due to inflation, around one in seven small business owners will raise their prices, which is a 48-year high for this statistic. Price hikes have been seen across the retail, wholesale, construction, and manufacturing industries.
SME owners are also concerned that job openings may not be filled.
The Bank of England has warned that inflation could rise above 7% this year, but some experts fear it will rise even higher.
Prices are rising at their highest rate for over 30 years.
The main reason for the hike in inflation is the rising global price of energy. The Ukraine conflict is making the situation worse.
Alongside inflation, businesses are dealing with supply chain issues and labour shortages, resulting in low earnings and sales for many companies.
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