MENTORS
  • News
  • Business
  • Self Growth
  • Mentors Collective Podcast
    • Apply As Guest
    • Listen on Spotify
    • Listen on Apple
No Result
View All Result
  • Login
  • Register
MENTORS
  • News
  • Business
  • Self Growth
  • Mentors Collective Podcast
    • Apply As Guest
    • Listen on Spotify
    • Listen on Apple
No Result
View All Result
MENTORS
No Result
View All Result

Why it is still important to support small businesses post-COVID

Mentors Collective Staff by Mentors Collective Staff
July 28, 2022
in Business
Woman putting red sign with words "Closed Due To Covid-19" onto glass door, closeup
Share on FacebookShare on TwitterShare on LinkedIn

With closures, distancing guidelines, and lockdowns, the pandemic hit small businesses especially hard. Already operating on tight margins, many didn’t have the financial reserves to keep the doors open and pay staff. During this time, there was a huge push by the media and national and local chambers of commerce to shop local to help sustain these businesses. At the time, more than 90% of consumers said that supporting small businesses was more important than ever. (Shopping Small Benefits More Than Just Local Businesses)

As people stayed close to home, not traveling for work or pleasure, they started to ditch the malls and big-box stores for local neighborhood retailers. In 2021, nearly 75% of consumers said they planned to shop more locally over the next year (https://www.brightpearl.com/ecommerce-guides/winners-and-losers-guide-us), with 56% prioritizing local shopping. (https://www.accenture.com/us-en/insights/retail/coronavirus-consumer-habits) Technology also played a role with more consumers engaging in direct-to-consumer purchasing behavior, especially through Instagram. 

But will this trend continue as more people spend time out of the house at work or travel or for entertainment? Looking at Google search trends, the interest in small businesses spiked at the outset of the pandemic and remained elevated but steadily declined to pre-pandemic levels in 2022. Early indicators were how to survive the disruption and craft business plans, suggesting more people were starting businesses while inventory management is now a breakout trend.  

Small Businesses Facing Different Challenges from 2020

“Most consumers don’t necessarily know that small businesses are incurring more price increases now than they were during the peak of the pandemic,” says Kathryn Hutchison, Senior Director of Ecommerce at Threadsy, an online wholesale apparel retailer. “The headwinds and challenges that small businesses are facing are very different than those that they were experiencing at the start of the pandemic in 2020.”

A recent survey by Capital One found that 48% of small business owners are concerned about inflation, with 71% saying that it has had a negative impact on their business and 77% worried that it will having a lasting impact. (Inflation Not Dampening Small Business Confidence) Small business owners are responding by building up cash reserves, increasing prices, and purchasing more inventory. While small businesses at the outset of the pandemic struggled with in-store traffic and pivoted to digital channels and curbside pickups, the lingering supply chain problems two years into the pandemic are changing how these businesses respond. 

Adapting to Changes in Prices

Consumers and small businesses have had to adapt to a wild price fluctuation over the last two years. At the outset of the pandemic, decreasing demand for products and services led to businesses reducing prices, sometimes drastically well below cost, to attract whatever remaining customers were left. (https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/pricing-in-a-pandemic-navigating-the-covid-19-crisis) Of course, this depressed demand was only temporary, but it led to small businesses reducing inventories as a way to control expenses. Limited inventory in store coupled with supply chain disruptions accelerated inflation. Because small businesses usually have less cash to absorb these shocks, they’ve had to pass these costs to customers. To combat this inflation, roughly 40% of small businesses expect to raise their prices by 10% or more.

(Inflation Pushes 40% of Small Businesses to Raise Prices by 10% or More – Bloomberg)

This is a difficult position to be in for a small business that needs to pass these costs to consumers, who will see this reflected in prices more so than in larger or national retailers. 

Support for Small Businesses More Critical Than Ever

The pandemic has taken its toll on business owners’ emotional and mental well-being. Almost 25% of owners say they are experiencing burnout, 60% feel run down, and 58% are worried about their finances.

(Inflation, burnout among biggest challenges small business owners face: Survey | ZDNet).

But supporting local businesses, especially after a disaster like a hurricane or a pandemic, is crucial to an economy’s health. Small businesses are an engine of growth in a community, and for every $100 spent locally, $68 is returned to the community. They even account for 65% of all new jobs over the past 17 years. (https://blog.mass.gov/blog/consumer-advice/think-local-7-reasons-why-supporting-local-business-is-good-for-your-community/) 

Small businesses still struggle to find footing during and after the pandemic. However, many small businesses have pivoted during this time to adapt to new technologies, practices, and operations to stay nimble, attract customers, and manage complex supply chain issues. Consumers and communities will continue to see the benefit of supporting small businesses and the positive impact they can have for years post-COVID.

Tags: covidsmall businesssupport
Mentors Collective Staff

Mentors Collective Staff

Mentors Collective is a premier news source for business, entrepreneurship, finance, and cryptocurrency. Follow us on social media for daily news and updates.

Related Posts

edit post
Business

Digital Business Leader Kaila Uli on Gaining a Following on Social Media

“I think expanding out on social media could be a little daunting for a lot of business owners,” Kaila...

by Dawn Wells
February 2, 2023
250
edit post
Is “Bitcoin’s Phoenix” Rising from the Ashes?
Business

Is “Bitcoin’s Phoenix” Rising from the Ashes?

the phoenix known as Bitcoin. Bitcoin’s journey has been fraught with twists and turns. So what’s the next move?

by Mentors Collective Staff
January 23, 2023
251
edit post
Conscious Leadership
Business

Conscious Leadership – The Conscious Leader’s View of the World

Conscious Leadership is a worldview and a leadership approach that starts with the belief that the Conscious Leader's primary...

by Geo Slam
January 20, 2023
253
edit post
daxsen bank smart
Business

Why Daxsen Bank is the Premier Choice in Digital Banking: A Comparative Analysis with Nubank

As Daxsen Bank, we believe that our innovative approach, disruptive products, and ambitious expansion plan set us apart from...

by David Daxsen
January 20, 2023
256
Next Post
edit post
Social-Emotional Learning Reduces School Violence

Social-Emotional Learning Reduces School Violence

Popular posts

  • I.O.I: Where Are They Now?
  • What Mahatma Gandhi Can Teach Qantas and Other Businesses about Customer Service
  • Navigating Recessionary Headwinds by Driving Efficiency in the Back Office
  • Understanding the Fundamentals of Real Estate Investing: Insights from Sam Primm
  • Quixotic Design Co.: Driving Women-Owned Businesses to the Top of Their Industries

Popular Tags

American Benefits brand Business business tips career coach covid-19 digital marketing economy employee Entrepreneur entrepreneurship featured finance Health inflation influencer investment Investor job leadership marketing Medical School mentor mentorship money News pandemic personal development plan recession Residency retirement small business social media sponsored startup strategy success tax technology tips work workplace
ADVERTISEMENT
  • About
  • Free Mentorship
  • Show Your Support
  • Become a Contributor
  • Apply As Guest
  • Listen on Apple
  • Listen on Spotify
Mentors Collective Success Magazine

Owned by Otter Love LLC

No Result
View All Result
  • News
  • Business
  • Self Growth
  • Mentors Collective Podcast
    • Apply As Guest
    • Listen on Spotify
    • Listen on Apple

Owned by Otter Love LLC

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version