Incfile recently interviewed small businesses on their growth plans despite the challenges they faced this year with labor shortages, supply chain issues and inflation. Most businesses saw an increase in operating costs last year. About 26 percent experienced more than 50% increases in costs while 4 out of 10 respondents saw some increases (but less than 50 percent).
COVID related supply chain issues and labor shortages have also impacted a majority of the small businesses surveyed. To combat the impact of the labor shortages, some companies have chosen to stop promotions and marketing campaigns. Some have moved more of their business operations in-house. Others have also chosen to take on more responsibilities than to hire more people, while some have hired temporary workers. Only 24 percent of small businesses were able to expand in 2021.