The tough economy is unavoidably trickle-down, and small business owners are feeling the pinch. A recent survey conducted by the United States Federation of Small Business (USFSB) and DYMO Corporation reported that 95 percent of small and medium-business (SMB) owners feel that their small business community has been challenged. Additionally, more than 55 percent of those surveyed reported their own personal business as being down.
The exact challenges plaguing individual business owners are varied, most prominent among them being decreased sales, less access to credit, health care costs and rising gas prices. And while health care costs were ranked as the leading challenge for the small business community (expressed by 85 percent of those surveyed), it is also the expense least likely to be cut.
Additional results of the survey detail ways in which SMBs are reducing expenses:
- 23 percent of respondents have cut staff
- 36 percent of respondents have decreased business travel
- 36 percent of respondents have minimized marketing efforts
- 29 percent of respondents have put a freeze on bonuses and raises
As economic troubles continue, SMB owners are looking for more than just ways to cut back, they are looking for ways to increase efficiency from their valued employees. In order to stay afloat and maintain success, a majority of SMB owners surveyed reported having cut business expenses in the last six months. To accomplish that, 45 percent looked for ways to increase productivity, often through new technologies.
Current Issue - May 2024