How SMBs are Facing Economic Challenges

How many SMBs are facing economic challenges such as inflation, tariffs, interest rates, supply chain problems, or reduced consumer spending? How are they handling those challenges? To find out, Bredin recently surveyed 500 SMB principals.

Roughly three in five very small businesses (VSBs, with 1-19 employees) say they face economic challenges, versus three in four small businesses (SBs, with 20-99 employees) and midsized businesses (MBs, with 100-1,000 employees). This is likely because larger SMBs are larger purchasers, and as a result are more likely to be affected by inflation, tariffs and supply chain issues.  

Percent of SMBs Facing Economic Challenges

‍Is your business facing challenges such as inflation, tariffs, interest rates, supply chain problems, or reduced consumer spending?

How are affected SMBs coping with these challenges? First, by cutting spending. Reducing expenses is the top way SMBs of all sizes are handling economic pressure.

For VSBs, raising prices is second, followed by pursuing new customer segments or markets. SBs are also second most likely to raise prices, followed by switching or renegotiating with suppliers for better terms, and investing in technology to improve efficiency.

MBs take a different approach. After cutting spending, their next most common strategy is increasing marketing to boost demand, followed by investing in technology to improve efficiency.

How SMBs are Handling Economic Challenges

What is your business doing to deal with these challenges? Select all that apply.‍

The takeaway for SMB marketers? Most SMBs are under economic pressure. Many are cutting expenses, so be sure the value you provide is clear. Others are boosting spending on marketing and technology. Demonstrate how you can help them gain customers or boost efficiency through advice or solutions to help them survive these challenging times, and continue to be valued customers well into the future.

‍Looking for actionable SMB insight? Bredin’s global research gives you high-value insights to improve your go-to-market and product strategies. We also generate uniquely valuable data for high-impact content, PR, social, and sales support programs.