Survey shows inflation, supply chain disruptions, workforce shortages remain top issues small businesses face
April 28, 2022
LANSING – Workforce shortages, inflation and supply chain disruptions remain the main obstacles Michigan’s small businesses are facing, according to a new survey released today by the Small Business Association of Michigan.
“Though there is more optimism among small business owners, the struggles that are plaguing small businesses are still very prominent,” said SBAM President and CEO Brian Calley. “Every day, small business owners are working hard while having to deal with inflation, supply chain disruptions and workforce shortages at the same time.”
Survey respondents overwhelmingly identified workforce shortages (52%), inflation (61%) and supply chain disruptions (55%) as the biggest problems facing their businesses. The survey, conducted April 19-27, of 500 Michigan small businesses, also revealed that:
- 68% of small businesses reported having a hard time finding and keeping their businesses staffed, indicating no improvement since SBAM’s January 2022 survey.
- 70% of respondents have increased wages to attract and maintain employees this year.
- 57% of small businesses said supply chain shortages have had a significant impact on their businesses, a slight improvement from January’s 61%.
- 60% of small businesses said the rising cost of energy is impacting their business.
- 87% of small businesses reported that costs are increasing more than in usual times.
- 60% of respondents are optimistic about their business in the next six months.
- 73% of small business owners are optimistic about the long-term survival of their businesses, a slight increase from January.
- 75% of small businesses said compensation costs have increased by more than five percent.
The Small Business Association of Michigan focuses solely on serving the needs of Michigan’s small business community through advocacy, collaboration and buying power. Today they serve over 28,000 members in all 83 counties of Michigan. SBAM is located in Lansing, just one block from the Capitol.