- ADP’s Small Business @ Work Survey finds that reduced sales revenues and lack of qualified workers are the key challenges facing small businesses
- Supply chain disruptions, higher costs, and difficulties in areas like cash flow and capacity are also creating problems
- Survey suggests that new technology and career shifts during the pandemic are contributing to labor shortages
Summary by Dirk Langeveld
Adjusting to reduced sales revenues is a key challenge facing small businesses, joining the ongoing problem in finding qualified employees.
The human resources management software company ADP recently released the results of its Small Business @ Work Survey, which polled more than 2,000 small business owners in May. Other major issues creating problems for small business owners included supply chain disruptions, higher costs, and difficulties in areas like cash flow and capacity.
- Many businesses adopted technology solutions during the COVID-19 pandemic, resulting in changing workforce needs as companies need employees who are trained to use such technology
- Younger people in hard-hit sectors such as hospitality have often shifted careers, contributing to a worker shortage in these businesses as they try to recover from the pandemic
- Half of small business owners plan to keep their wages the same, with larger companies more likely to offer salary increases
- Nearly one-third plan to raise their prices in the next six months
- Business owners expect workforce challenges to ease and growth to accelerate in the fall once schools resume, alleviating child care burdens facing some potential workers
