Small Business Trends OCT 2022 / by Samson Haileyesus / Read original article

The impact of inflation is highlighted in a new global report by Meta, the parent company of Facebook. According to the report, inflation and rising costs of inputs are emerging challenges for most Small and Medium-sized Businesses (SMBs). The analysis of SMBs in 30 nations found that inflation was a major concern for SMBs particularly those involved in export.

Impact of Inflation on Small Business – Meta Report

Almost a quarter (23%) of US-based small businesses reported an increase in their cost of inputs and raw materials in the past six months. This is in stark contrast to the global average of 45% of SMBs that were forced to shutter during the same period. The rise of inputs and raw materials have prompted 54% of SMBs globally to raise prices for their good and services by more than 5% in the past 6 months. While a further 9% of SMBs reported increasing their prices by more than 50%. In contrast, only 28% of SMBs in the US who felt the impact of inflation raised prices by more than 20% in the past 6 months.

Hard hit are SMBs engaged in exports of which only 30% report having sold goods or services internationally in the past five years. While only 15% of US-based SMBs reported succeeding in exporting their goods or services to other countries in the same period.

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