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Published: Nov 06, 2023 4 min read
Photo-illustration of hands holding miniature dollar bills.
Olive Burd / Money; Getty Images

When it comes to inflation, much ink has been spilled on the pinch it’s put on family budgets. But two recent reports document how strongly small businesses, too, have been hit by rising prices and interest rates, and how they've had to reinvent the ways they operate to stay afloat.

“High inflation also created hardships not only for consumers but for businesses nationwide,” Keith Savage, a statistician for the U.S. Census Bureau, wrote in a October 2023 Bureau report. These modest enterprises, often with only a handful of employees, have struggled as the cost of supplies and labor have skyrocketed, along with the cost of borrowing.

A key reason they've endured is their ability to change with the times, a new survey concludes. "Despite the challenges posed by inflation and interest rates, small business owners seem to adapt to the current economic climate and demonstrate impressive agility and resilience," said Tomer Barel, president of the B2B payment service Melio, in a news release for the survey.