Supply chain disruptions continue to affect businesses of all sizes, but small companies are facing big challenges when it comes to pricing, shortages, and delays, according to a survey from invoicing software company Skynova, released this month.
The survey of 775 small-business owners across a range of industries found that nearly half have been affected by supply chain issues, and two-thirds said they’ve had to adapt in at least one way to deal with recent supply chain headaches. Almost half said that their ability to stay in business has been at least somewhat affected by supply chain issues.
“The supply chain issue is currently dividing small business owners. Although nearly half of entrepreneurs have yet to feel its effects, 77% of those surveyed admit they’ve been experiencing heightened stress levels,” according to the research, which also listed increased uncertainty/doubt (64%), decreased optimism (47%), concerns about financial viability (46%), and decreased confidence (38%) as the top personal issues small-business owners are facing as a result of supply chain challenges.
Pricing problems are the biggest issue facing those affected by supply chain constraints, with nearly 70% listing increased materials pricing as their top business challenge, and 36% listing the issue as their most costly business challenge. In addition, 43% of respondents said they’ve raised their prices due to supply chain issues, by an average of 4.3%. A quarter of small businesses said they’ve raised prices by 5% or more and 11% said they’ve raised prices by 10% or more.
Two-thirds of respondents listed materials shortages and delays as top operational challenges, and more than half pointed to increased shipping costs for materials as a top challenge.
Of those who said they have had to adapt their business to handle supply chain disruptions and delays, the top two methods are turning to alternate suppliers (45%) and finding alternative products or materials (40%).
Retailers have been the hardest hit (63%), followed by companies that provide in-person services, such as plumbers and repair contractors (52%). Small businesses offering digital or consulting services have been less affected, 37% and 36%, respectively, according to the report.