LANSING ? The specter of inflation, driving up the cost of doing business, has become a big concern for small business owners in Michigan, says the latest quarterly Barometer survey from the Small Business Association of Michigan.
SBAM?s latest quarterly Barometer survey finds that 61 percent of small business owners feel that inflation is having a significantly negative impact on their companies. These entrepreneurs also say they fear that the cost of doing business will continue to increase.
In a separate question, 60 percent of small business owners surveyed said that inflation was limiting the stability or growth of their firm at least ?somewhat.? Very few small business owners feel that inflation does not curtail the growth of their firm. Fifty-nine percent say inflation will hurt them in the future.
Small businesses have resorted to a number of strategies to combat inflation, according to the survey. Cutting back on business expenses is the most used measure. Thirty-two percent of small businesses plan to cut back on business expenses, while another 54 percent have already done so.
Thirty-one percent of small businesses plan to raise the selling prices for goods and services. A separate 27 percent have already raised the selling prices of their goods and services. However, only 8 percent of small businesses plan to lay off employees in the future to combat inflation.
The quarterly Barometer survey is sponsored by SBAM with the participation and support of the Center for Urban Studies of Wayne State University. The survey was conducted by Public Policy Associates of Lansing.
