A new survey from a non-profit research group advocating small business has found that nearly two-thirds of small businesses in America have raised prices the past year. While higher prices have helped some businesses, others have experienced slowdowns in consumer spending.

Reasons for Higher Prices


Slightly over half of small businesses surveyed said supply chain disruptions had a significant impact while nearly a third reported a moderate impact. Only 14% characterized the impact of the supply chain crisis as “mild.”

The overall impact of supply chain disruptions has been lost sales, according to 80 percent of respondents. Only 15% saw no lost sales. Meanwhile, 89% expect supply chain disruptions to continue for at least five months.

Comparing March 2022 Sales with Pre-Pandemic Levels

After two years of the pandemic, 35% of SMBs say their sales are at or exceeding pre-crisis levels, which is an uptick from 26% in September 2021. Only about a third of businesses surveyed said they had returned to 75-99% of sales levels prior to the pandemic. Only 12% of small businesses reported sales that have fallen 50-74% of pre-crisis levels.

Most small business owners view their local economies performing below pre-crisis levels while 24% claimed economic activity has returned to normal levels. Slightly less than half of small business owners are pessimistic about economic recovery by 2023.

Only 12 percent reported the Omicron variant surge in January 2022 made a major negative impact on their operations, while 19% said it had a moderately negative impact.

Labor Shortage

About a quarter of small employers report facing a significant staffing shortage. Another 18% report a moderate labor shortage while another quarter are dealing with a mild shortage. Only 29% claim they are not experiencing a staff shortage. The impact of labor shortages on sales, however, has been relatively minor.

Overcoming Small Business Challenges

Even though countless small businesses closed their doors due to the pandemic, many of the companies that remained open did so due to resilience and making business model adjustments. Some of the keys to business survival during the pandemic have been shifting to ecommerce and remote work.

The “great resignation” forced many companies to rethink strategies for attracting ideal talent. Boosting wages was a solution reported by 85% of respondents. Other solutions included pay increases for time off, better hiring bonuses and enhanced health coverage. An effective strategy for boosting productivity has been to invest in new technology, according to 36% of small employers.

The survey of 605 respondents was conducted March 10-11 by NFIB Research Center.