InsurTech NEXT Insurance, which provides small business insurance, has reported that 73% of retail small businesses are experiencing negative impacts to their business caused by supply chain issues.
NEXT Insurance surveyed more than 500 small business owners of various ages, gender, industries and geographic locations to hear how they are faring amid supply chain disruptions where inventory deliveries are delayed, and products are unavailable.
The report found that not only about three out of four (73%) retail businesses are moderately impacted by supply-chain issues, but 62% of owners expect supply-chain disruptions to impact sales or revenue, and another 62% of retail business owners said these disruptions will have a moderate or high impact on cash flow.
In addition, small business owners were fairly divided when it came to their optimism about the prospect of an economic recovery from Covid-19 within a year. About one third (30%) reported being either “not at all” or “not very” optimistic about an economic recovery, while 71% are either “somewhat”, “very” or “extremely” optimistic.
NEXT Insurance said this is a notable drop from its small business guide survey from July 2021, which documented that 84% of small business owners said they are somewhat, very or extremely optimistic about a recovery.
Interestingly, while it’s clear the supply chain disruptions are impacting small retailers across the board, it seems male business owners are having a slightly tougher time: 53% of men said they experienced supply chain disruptions, while just 37% of women said the same.
Suzanne DuFore, head of research at NEXT Insurance, said, “These findings make it abundantly clear that retailers need support from their communities now more than ever, whether in the form of customers or the right toolsets to make weathering these storms even a little bit easier.”
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