A report published by Arizent states that inflation is a major concern for small businesses. With 73% of respondents citing it as one of the top three difficulties confronting their small businesses today, inflation dominates the list by almost a two-to-one margin, followed by supply chain disruption (44%), recruiting/retention (37%), and inflation.

It would seem that small business stakeholders are more concerned about issues like inflation and hiring over others like access to financing or payroll processing, despite the fact that such issues are essential to maintaining and expanding a business. This is probably due to the established achievement pathways for obtaining capital. On the other hand, small business owners and executives have little control over things like inflation, supply chain problems, and recruiting.

As a result of their concerns about inflation, they are acting to cut costs and enhance efficiencies by investing in technology. Nearly two-thirds (63%) of the respondents expect to invest in technology over the next 12 months to minimise the effects of inflation and achieve their goals. Nearly half (47%) anticipate increasing their spending on customer experience in order to attract and keep consumers, as well as concentrating on their talent difficulties by spending on employee benefits (46%) and employee compensation (45%).

Source: Arizent, Future of Small Business Banking 2022