Inflation negatively impacting Arizona small businesses

Inflation remains a major concern for small business owners nationwide, including Arizona, a survey from the National Federation of Independent Business recently found.

The survey found that inflation is hurting these businesses in many ways.

For example, 79% of small employers say that rising fuel costs are leading to higher consumer prices, while 72% said that “inventory, supplies, and materials” are substantially contributing to higher costs.

Of those surveyed, 86% said they are raising their prices due to inflation. However, it found that only 7% of those raising their prices are trying to recoup the total cost of inflation. Meanwhile, 82% of small businesses say they are dealing with lower earnings due to inflation.

Chad Heinrich, Arizona state director for the National Federation of Independent Business, was alarmed by the findings.

“Arizona’s small-business owners are battling the effects of inflation from multiple fronts. And sadly, the more than 1 million Arizonans who work for small businesses are struggling as well,” Heinrich wrote in a press release. “Everyone is working more for less in this economy; with no end in sight. Expectations for improvement in business conditions are at a 48-year low. We can only hope at this point that our policy leaders will reject any tax increases or spending proposals that would do nothing but worsen this problem in the short or long term.”

Holly Wade, executive director of NFIB’s Research Foundation, said this problem is bad for businesses and consumers across the country.

“Inflation has set in on Main Street, and owners across the country continue to make business decisions in response,” Wade wrote. “As owners manage the highest inflation rate in decades, they are also managing an ongoing worker shortage and supply chain disruptions, which is hurting their businesses and consumers.”