By Myranda Mondry
Inflation is the biggest threat facing U.S. small businesses in 2022, according to recent QuickBooks data. 99% of survey respondents say they’re concerned about the rising costs of goods and labor, and more than half say they’re very concerned.
With inflation comes additional cash flow challenges for small businesses. More than two-thirds of respondents say they’ve encountered cash flow problems this year, and 23% say it’s a major problem for their business. They identified rising costs as the number one cause of these challenges.
To combat inflation, many small businesses have been forced to dip into business savings accounts (if they’re lucky enough to have cash in reserve) or turn to credit cards, loans, or even their personal bank accounts to keep their business afloat. Nearly 40% of small business owners say they’ve dipped into their personal savings for their business this year.