Topline
Almost two-thirds of small and mid-size business owners say they plan to increase prices next year as nearly all wrangle with inflation hitting their operations, a Bank of America report finds, yet many owners still expect higher revenue and plan to expand in the year ahead.
A man wearing a striped apron and hat wraps a piece of meat, with many cuts of red meat visible in a display case, at Local Butcher Shop, an artisan butcher’s shop in the Gourmet Ghetto (North Shattuck) neighborhood of Berkeley, California, September 27, 2017. (Photo by Smith Collection/Gado/Getty Images)
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Key Facts
Bank of America reported Tuesday that 88% of small and mid-size business owners say inflation is hitting their operations, prompting 64% to plan price hikes and 39% to curb spending next year.
The survey of more than a thousand small and medium-sized businesses found that 75% are facing supply chain strain.
Among those affected by supply chain issues, 52% are raising prices and 32% reported difficulty sourcing products and services.
Still, the report notes that 74% of small and mid-sized business owners expect revenue growth and nearly 60% plan to expand their business.
The study accounted for business owners in the US with annual revenue between $100,000 and $50 million.
Big Number
$202 billion. That’s how much the U.S. Chamber of Commerce estimates small businesses will face in annual tariff tax, based on applying the tariffs announced on July 31 to the value of goods those firms are known to import.