Small Businesses Slash Budgets Amid Inflation, 52% of Consumers Reduce Spending

According to a study from Constant Contact and Ascend2, most of the small business owners are cutting back on their expenses because of rising inflation. 46% out of 16,00 small business owners and marketers who were surveyed said that they are impacted from the inflation and that's why they are budgeting their expenses accordingly.

The respondents of the survey also said that they have increased their prices due to inflation (39%). Other measures these small business owners have taken to mitigate inflation are improving operational efficiency (24%), focusing on customer retention and loyalty programs (22%) and diversifying new products and services (19%). These are measures taken by SMBs (firms with 250 or less than 250 employees).

52% of the consumers also said that they have cut off their spendings at small businesses this year because of inflation. 10% said that they have increased their spendings to help support small businesses. 34% said that they spend the same amount as before even amidst this inflation and 4% consumers do not spend on small businesses at all.

The SMBs with 2-10 employees are more impacted with this inflation. 51% of the small businesses with 2-10 employees have cut their expenses and 41% of SMBs with 11-99 employees have increased their prices.SMBs with 100-250 employees have diversified with new products while 36% of them have focused on customer retention and loyalty programs.

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by Arooj Ahmed via Digital Information World