Local spending is a lifeline for small businesses. The past 18 months have brought unprecedented challenges for small businesses because of COVID-19. As we recover from the pandemic, e-commerce giants and perceived convenience factors remain threats to small businesses. According to a recent U.S. Chamber of Commerce study, one of three local business owners says that generating revenue is the business’ top challenge as they look at recovery from the pandemic.
As small businesses look to put the pandemic behind them, their biggest challenge is generating revenue. Although 58% expect their revenue to increase in the next year, 34% cite revenue as their biggest challenge right now.
Inflation/higher costs are also proving tough to manage: 72% of small businesses said managing higher costs due to inflation is difficult, and 73% said rising prices have had a significant impacton their business in the past year.
Supply chain challenges are another top concern. This quarter, 61% of small business owners say it is difficult for them to manage disruptions to their supply chains (80% for retail businesses).
Sixty-two percent say their supply chain has been dramatically disrupted during the pandemic.
At the same time, according to the study, small business owners are optimistic about their current business health and recognize improvement in the overall economy. More than half (55%) of small business owners believe the health of their business is good, two-thirds (66%) believe their cash flow situation is good, and 58% expect their revenue to increase in the next year.
The pandemic has forced the adoption of online shopping because of the large-scale lockdowns and government-mandated business closures in 2020. You saw incredible competition with delivery apps and increased online sales, which are likely to remain after the pandemic has receded. If the purchasing habits shift online permanently, locally we will face the risk of fewer locally owned businesses ran by passionate entrepreneurs, and ultimately a loss to our local tax base that ensures the community’s ability to provide its core functions for its citizens and pay our debt obligations.
Shopping locally is a must and not just during the holidays! As consumers, we must reshape our habits and make the extra effort to find the option locally and be patient with the local business if they have to source the item. It’s also up to the businesses to make the effort to be found online and offer e-commerce and work hard in a new way to either recapture or capture new clients and consumers. According to Forbes, there is a limited time window to nudge people to resume habits of shopping locally -- which has a substantial secondary value as money recirculates in the local community up to nine times.
Shop locally and Shop Salina 365!
Eric L. Brown, President/CEO
Salina Area Chamber of Commerce
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The above opinion piece is reprinted, with permission, from the November 2021 edition of the Salina Area Chamber of Commerce "Chamber Connection."