Interest rate hikes impact everyone, and small businesses small businesses are being hit especially hard at the moment. While monetary policy set by the Federal Reserve aims to curb inflation, there is a lag time for the effects to work. Meanwhile, small business owners face rising gas prices, price hikes related to the supply chain, ever-increasing labor costs, and a constantly rising cost of capital due to Fed interest rate hikes.
According to the 3Q22 U.S. Chamber of Commerce Small Business Index, half of small businesses say inflation is the top challenge, a drastic 31-point increase from a year ago, and 71% believe when it comes to inflation, the worst is still to come. In response to inflation pressure, 67% of small business owners have raised prices. Yet another sign of small business pessimism: 88% of small businesses are concerned about the U.S. entering an economic downturn next year.
Subscribe
Gain access to all our Premium Content on FintechZoomPRO.More than 400+ articles, Daily updates, Real-time data, Better research, Advanced analytics.
