State of SMB: The Effect of Inflation and Tariffs

Inflation and tariffs are driving up costs, and our survey of 500 SMB principals explores how SMBs are reacting. Some highlights:

‍Inflation is causing SMBs to raise prices. In response to rising costs, SMBs of all sizes are most likely to increase costs. Very small businesses (VSBs, with 1-19 employees) are equally likely to absorb some cost increases.

After increasing their prices, small businesses (SBs, with 20-99 employees), and midsized businesses (MBs, with 100-500 employees) are most likely to negotiate better deals with suppliers, followed by absorbing some price increases.

How SMBs Are Responding to Rising Costs

Tariffs drive price hikes. The effect of tariffs varies by SMB size. VSBs and MBs are most likely to have experienced supply price increases, while SBs are most likely to have raised prices. SMBs of all sizes are also likely to have taken a margin hit by absorbing some cost increases.

How Tariffs Are Affecting SMBs

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