Owners are concerned about the economy and
inflation, but remain resilient
CHARLOTTE, N.C., April 28,
2022 /PRNewswire/ -- Small business owners have taken
many actions to overcome the challenges they are facing to grow
their business due to economic uncertainty and rising inflation,
according to Truist (NYSE: TFC) annual Small Business Pulse
Survey1 of small businesses (annual revenue between
$100K-$2M).
The economy and inflation are top of mind
Rising inflation, rising costs and economic uncertainty are more
pressing issues for small business owners than finding new
customers. The top business concerns include the ongoing COVID-19
pandemic (31%), inflation (28%), rising costs (28%), economic
uncertainty (25%).
Additionally, most small businesses have recently been hard hit
by supply chain issues and labor shortages.
- 67% said their workforce has changed over the past year, and
24% have open jobs, 23% lost key workers and 18% shifted to
contractors.
- 65% experienced issues with supply chain in the past year,
which impacted their businesses in many ways, including lower
profitability (45%), reduced sales (42%), and loss of customers
(36%).
Still, small business owners are more resilient to combat
these challenges
Small business owners have taken many actions to overcome the
issues and challenges they have faced the past few years:
- Supply chain issues have prompted small business owners to
search for new supply sources (48%), use local suppliers (45%) and
adjust delivery schedules (37%).
- 81% have taken action to retain employees through increased
wages (41%), offered remote work (27%), provided training (22%),
and offered additional vacation time (21%).
- 90% have taken action to address for inflation by accepting
lower profits (39%), changing purchasing to reduce expenses (36%)
and reevaluating pricing (35%).
Additionally, small business owners have made contingency plans
for turbulent times and are prepared for unplanned events,
including loss of key supplier (60%), loss of key employee (59%),
loss of key customer (58%), economic downturn (58%) and natural
disaster (51%).
"It's encouraging to hear that while uncertainties in the market
remain, small businesses are being proactive to make investments to
achieve business goals," said Scott
Stearsman, head of small business for Truist. "This
resiliency we're seeing indicates the COVID-19 pandemic helped our
small business leaders learn to better prepare for the unforseen,
and continue to be inspired to build better lives and
communities."
Despite this uncertainty, small business owners are
optimistic about their financial well-being
Many small business owners are more positive about their
financial future than they have been compared to the past three
years, according to the survey. Sixty-seven percent are optimistic
about their financial well-being, which is a 7% increase compared
to 2021, and an 18% increase compared to 2020.
"Our survey found that they are more optmistic about their
finances than at any time in the past three years, and this
includes 2019, even before the pandemic," said Stearsman. "Despite
the fact that small business owners are facing many challenges and
concerns, their future financial well-being is not one of
them."
About Truist
Truist Financial Corporation is a
purpose-driven financial services company committed to inspiring
and building better lives and communities. Truist has leading
market share in many high-growth markets in the country. The
company offers a wide range of services including retail, small
business and commercial banking; asset management; capital markets;
commercial real estate; corporate and institutional banking;
insurance; mortgage; payments; specialized lending; and wealth
management. Headquartered in Charlotte,
North Carolina, Truist is a top 10 U.S. commercial bank with
total assets of $544 billion as of
March 31, 2022. Truist Bank, Member
FDIC. Learn more at Truist.com.
1 A 20-minute online interview from February 14th, 2022 – March 3rd, 2022 with businesses that met the
following qualifying criteria:
- Geographically representative of US businesses within each
revenue sub-group
- Work in a relevant industry, excluding Financial
Services/Insurance, Not for Profits/Religious and Government
Organizations
- Company's Annual Revenue is between $100K to less than $2MM
- Sole decision maker for financial decisions, or strongly
influences decisions
- 522 total unweighted interviews:
- 268 Lower Revenue Small Businesses (annual revenue between
$100K up to $999K)
- 254 Upper Revenue Small Businesses (annual revenue between $1MM
up to $2MM)
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SOURCE Truist Financial Corporation