As inflation soars, major corporations are posting record profits. But small businesses are feeling the squeeze

With the price increase, Mandy Gooding’s small business abundance organizer held a team meeting. Employees of the Richmond, Virginia-based company, which helps people reduce or resize and unpack after home renovations and relocations, were feeling the pressure of rising costs. Paying for gas just to get to customers’ homes – sometimes up to an hour’s drive – was eating away at their salaries.

The business immediately redistributed the money to the budget and the team members received گیس 25 gas cards. But the move was only a temporary solution. Goddard didn’t see the problem go away any time soon, so just weeks later, Abundance Organizing raised service rates by 25% to increase employee pay.

So far, the demand for services is high as the impact of the corona virus epidemic is diminishing – but it is unclear how long it will last after two years.

Inflation rose 8.5 percent last year, the fastest annual price since 1981. Gas prices have risen by almost 50% over a year ago. And grocery prices have risen by 10%. Russia’s invasion of Ukraine exacerbated the problem, as the country struggled to maintain its high demand and supply chain problems during the Corona virus epidemic.

While some big companies have reported. Last year’s record profit And many studies show that while costs are rising, small businesses are feeling the pressure.

Eighty percent of small business owners say the financial health of their business has been affected by inflation over the past six months, according to a new Goldman Sachs 10,000 Small Businesses Voices survey. Of these, 67% have increased wages to retain employees, and 61% have increased wages to attract new employees. Meanwhile, 60% said they have met their cost overruns by raising prices and passing it on to consumers.

73% of small business owners said the rise in energy prices – up to 32% overall over the past year – was having a negative effect on the bottom line.

Overall, 91% of small business owners say broader economic trends, such as inflation, supply chain issues, and manpower challenges, are hurting their business. And while the United States The economy is considered strong. By various measures, 56% of small business owners say the economy has grown since January this year.

As small businesses cope with inflation – this is adding to the other challenges they are already facing. At the top of the list, the biggest challenge for small business owners is hiring and retaining viable workers. Are close

This is a problem facing God. Abundance Organizing – which has 16 employees and a salary ranging from $ 15 per hour to $ 35 per hour – is actively seeking employment but is already expected to make changes to be competitive.

“To compete with Corporate America, we basically need to pay an employee مزید 12,000 more,” Gooding said, acknowledging some of the benefits offered by big business that they themselves do not. Can

The situation has become the story of two rehabilitations, small business owners think: 88% of respondents say they have 42% more than big companies in their local communities said they have hired employees in big business. Lost which is more and 70% upset. Employees will leave their business because big business can offer higher pay.

Joe Wall, national director of Goldman Sachs’ 10,000 Small Business Voices, said: “The competition for wages is fierce, but I think it’s even more intense and what small businesses can’t compete for profit.”

Small Business Owners Want Congress to Work: 86% believe that the federal government should do more to level the playing field so that small businesses can compete better with larger companies. “They’re not asking for a handout, they’re asking for access,” Wall said. The Small Business Administration has not been re-authorized for more than 20 years, an initiative that could help modernize and streamline programs.

As Record profits Being watched by big corporations, for small businesses, this is just another punch in the gut after two years of already struggling with epidemics.

“It just seems so unbalanced,” Gooding said. “We are not making that kind of profit in our company.”