Clover is a technology that helps small businesses in the U.S. respond to challenges.
concern – rising costs
In the United States, where inflation is hovering at around 9%, 41% say that their most significant concern is the impact of rising prices on their businesses—nearly three quarters (73%) said that their costs had increased in the past year. The primary way that business owners manage rising costs is to pass on the cost increase to their customers (35%); others noted they are reducing overhead (20%) or hours of operation (8%).
Maintaining sales and margins
Many small business owners can maintain sales and profit margins despite rising costs. 40% of small businesses reported that their sales had increased in 2022. Another 40% supported the same deals from year to year. 70% of small-business owners said their profit margins were the same as in 2021 or had increased over the past year.
Small Business Hire
Many small business owners need help to fill positions as unemployment rates remain historically low. In the six months following the pandemic, 44% of businesses that hired new employees said finding workers was harder. How are small companies finding new employees in creative ways? Employee referrals were the primary source for 22% of small businesses; social media was used by 16%.
Optimism reigns despite a cloudy outlook.
Despite rising inflation, costs for talent and goods/materials, and high inflation rates, most SMBs (88%) are cautious to excessively optimistic about the rest of the year. The Midwest and South have the most profitable small businesses; the Mid-Atlantic has the least optimism.