Comment on National Survey About Inflation’s Effect on Small Business

Date: July 19, 2022

Colorado’s hostility to produce the energy it needs compounding the problem

FOR IMMEDIATE RELEASE
Contact: Tony Gagliardi, Colorado State Director, tony.gagliardi@nfib.org,
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

DENVER, July 19, 2022—From Tony Gagliardi, Colorado state director for the National Federation of Independent Business (NFIB) on today’s release of NFIB’s special survey on inflation’s effect on small businesses. The national survey, not broken down by state, was drawn from a random sample of NFIB’s membership. Nearly 75% of NFIB-member small businesses have nine or fewer employees.

“Small Businesses are not only suffering the ill-effects of inflation and fuel prices nationally, but in Colorado the problems are compounded since a large part of the state’s energy production has been shut down by the current administration and unelected commissions. The food service sector’s price of product is escalating at alarming rates, in addition to a severe lack of workers. And, to add insult to injury, some cities are tacking on local sales tax to an already questionable Retail Delivery Fee, imposed behind closed doors in SB 21-260”

From NFIB Holly Wade, Executive Director of NFIB’s Research Foundation

“Inflation has set in on Main Street and owners across the country continue to make business decisions in response. As owners manage the highest inflation rate in decades, they are also managing an ongoing worker shortage and supply chain disruptions, which is hurting their businesses and consumers.”

Highlights from the Survey

  • Over three-quarters (79%) of small employers reported that rising “fuel (gasoline, diesel, fuel oil, etc.)” prices are a substantial contributor to higher costs.

  • Seventy-two percent of small employers reported “inventory, supplies, and materials” as being a substantial contributor to higher costs.

  • Under a third (31%) of small employers reported “labor” being a substantial contributor to higher costs.

  • Four percent of employers report “rent” being a substantial contributor.

  • Eighty-six percent of small employers are increasing the prices of their goods or services. Of those increasing prices, 7% reported that the effort was absorbing all their total cost increases, 36% reported most, about half (47%) reported some, and 9% reported a little.

  • Eighty-two percent of small employers absorb costs through lower business earnings to some degree. Nine percent reported this absorbing all their total cost increases, 28% most, 50% some, and 11% a little.

Keep up with the latest Colorado small-business news at www.nfib.com/colorado or by following NFIB on Twitter @NFIB_CO or on Facebook @NFIB.CO

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For nearly 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

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