One-Fourth of Small Business Say Supply Chain Issues Endanger Survival

Almost one in four small businesses say supply chain issues are moderately or significantly impacting their ability to survive, according to a Skynova survey.

The average length of time small businesses estimate they could sustain themselves while suffering a drop in revenue is about 15 months, but 26% said they could only handle substantial revenue losses for six months or less and another 40% said seven to 12 months was their limit.

Other results from the survey found:

• Almost half (46%) of business owners expressed concerns over the financial viability of their business.
• Of the retailers polled, 63% reported an inability to properly stock their shelves or find replacement parts. Among in-person service providers such as plumbers and repair contractors, 52% said they were experiencing these issues.
• Due to supply chain issues, 43% of small businesses have raised their prices with an average price hike of 4.3%. A fourth of small businesses have increased their prices by 5%, and 11% have done so by 10% or more.
• Although 48% of small business owners said they have not been impacted by supply chain issues, 77% of those who have been impacted say they have been experiencing heightened stress levels.
• In addition, 64% of those with supply chain issues said they have an increased level of concern about future conditions, with 46% feeling regularly concerned about the financial viability of their business.
• The top way small business owners have adapted to supply chain issues is by finding alternative suppliers, with 45% reported doing so. The second most common way to adapt, at 40%, is to find alternative products or materials, followed by increasing product/service prices and ordering larger quantities (both at 31%).

The survey was conducted among 775 small business owners, with an average age of approximately 39. To help ensure accurate responses, all respondents were required to identify and correctly respond to an attention-check question. The survey relies on self-reported data.

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