As the pandemic continues to rage on, businesses large and small continue to face a rise in the cost of doing business. An increase in demand and never-ending supply shortages has caused shelves to remain empty and coveted items to remain out of stock. While larger businesses typically have an abundance of financial resources to bounce back from these rising costs and shortages, small businesses are struggling to compete with larger businesses for limited resources.

Greater Baton Rouge Business Report wrote in an article, according to a survey by Goldman Sachs, that two-thirds of small businesses say that suppliers are preferencing large businesses because of their ability to purchase in large quantities. This preference suppliers have towards large businesses is also felt by the consumer. Customers are leaving small businesses for larger ones in order to have their needs met. Large businesses are having record sales numbers, while small businesses face a financial crisis due to these supply shortages.

Can small businesses recover? Absolutely. Despite many customers going to larger businesses to fulfill their needs, there is an upward trend of shopping small. Small businesses provide a service that large businesses simply can’t compete with, a personal experience. While shopping online and from big box stores can be convenient, many consumers crave the personal interactions that small businesses provide.

For more information see https://www.businessreport.com/economy/small-businesses-bearing-brunt-of-supply-chain-issues-inflation

For help with your small business needs, contact the Elon Law Small Business & Entrepreneurship Clinic at businessclinic@elon.edu