LAS VEGAS (KLAS) — A new report tracking the recovery trends and growth outlook of small businesses is taking a look at how long businesses anticipate economic obstacles in addition to what they’re offering their employees.
Kabbage from American Express polled 550 small business leaders, showing in the latest recovery report that businesses have nearly doubled revenue year-over-year between July of last year and July of this year, but profits did not follow suit.
“Inflation is making a meaningful dent in their business from that same period, profits had slightly declined 4% during that time period,” said Brett Sussman.
Sussman said these businesses anticipate future economic obstacles to last at least until the summer of 2023. Almost half the businesses reported that inflation is impacting their labor market, forcing them to accommodate and compensate for higher healthcare, better employee benefits, and more frequent pay raises.
“They are giving raises to their existing employees, in fact, 40% said they are looking to increase wages on existing employees,” he said. “They’re actually providing more workplace flexibility, which you usually think about for larger companies and not smaller companies, 49% said they are putting practices in place for flexibility.”
When analyzing hybrid and remote working options by business size and age, businesses less than two years old are more likely to offer this to their employees.
These options are nearly twice as likely to be implemented among the largest small businesses compared to the smallest small businesses. Sussman said it’s a great tactic to retain people and keep costs down.
Susssman added that small businesses have to incorporate digital use. Facebook is reported as the top platform, nearly double that of Instagram, followed by YouTube and LinkedIn.