2 weeks Ago
, /PRNewswire/ -- Often the first to feel the effects of inflation and economic volatility, small business owners are optimistic about their businesses, even as economic challenges remain. found that 65% of small business owners feel confident they could fund their operating expenses for one month with their cash reserves, if an unexpected need arose. Still, 37% of business owners anticipate that inflation will slightly increase their operating costs and 27% expect a significant increase in operating costs in the next 12 months.
The top challenges small business owners anticipate this year are fluctuating sales/revenue (35%), delayed payments from clients/customers (29%) and high overhead costs (28%). Despite these concerns, small business owners are well-adjusted and taking precautionary measures to protect their businesses—and the employees and communities they serve. They are already implementing cost-cutting measures (32%), increasing cash reserves (30%) and exploring alternative financing options (22%).
As one of the top indicators of financial resilience in the US, their actions could be the first signal of an improving economic environment. "Running a business is not an easy task, and when coupled with uncertain economic conditions, rampant inflation and high interest rates, small business owners are faced with ambiguity," said , President of Business Banking at KeyBank. "Their resilience is a testament to years of weathering financial uncertainty, and with their con.
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