Today, I want to dive into a topic that's close to my heart and essential for anyone navigating the world of entrepreneurship: the current struggles of small businesses.

It's no secret that running a small business has always been challenging, but the climate we're in now has added a host of new hurdles.

Let's break down why it’s so difficult and why even the greatest efforts sometimes yield only modest results.

Economic Uncertainty

The economic landscape today is riddled with uncertainty.

From fluctuating interest rates to unpredictable consumer behaviour, small businesses find it hard to plan long-term.

My personal conflict now is:

• How do I price my products, so it reflects the time I take to make them?
• How can I make these prices comfortable for consumers’ budget?
• Will I make any profit to sustain my business if my prices are desirable?

All these questions circle back to one important factor: the art of balance and perseverance (if the current economic climate does not completely cripple small businesses).

Overall, economic instability means people are more cautious with their spending, directly impacting small businesses that rely on consistent cash flow.

Rising Costs

Inflation is a significant concern, driving up the costs of everything from raw materials to shipping.

For small businesses, which often operate on thin margins, these rising costs can be devastating.

From a consumer’s perspective, which we all are, it is understandable why many fear the pricing some small businesses have to offer; at the end of the day, we all must be in survival-of-the-fittest-mode.

Risings costs put everyone in the middle tier and below at risk.

Unlike larger corporations, we small businesses lack the buying power to negotiate lower prices or absorb cost increases.

Supply Chain Disruptions

The global supply chain has been severely disrupted over the past few years, and small businesses are feeling the pinch.

Delays and shortages make it difficult to keep inventory stocked, meet customer demands, and maintain timely operations.

I recently had an incident where a postal service company withheld a parcel I sent to a customer because the label I bought ‘didn’t match the size of the parcel’.

Not only did this feel embarrassing as this hurts my image of time management, but also insulting to my assessment of how I should send my parcels.

Because of their lack of notification and update on this incident, the customer’s parcel did not arrive on time for the occasion which they ordered for.

These disruptions not only lead to lost sales but also harm the reputation of the business.

It is lucky the customer understood the disruption and didn’t hold me accountable for this fault.

Digital Competition

The rise of e-commerce giants like Amazon has reshaped the retail landscape.

These platforms offer convenience, low prices, and fast shipping that small businesses find hard to match.

The digital marketplace is fiercely competitive, and without the resources to invest in advanced technologies and marketing strategies, small businesses often find themselves at a disadvantage.

Take me for example: I’m 23, 2 years out of graduating, and still navigating the path of adulthood.

Although I’m determined and disciplined in my efforts, I still cannot match the price of those bigger businesses who have a specific budget for strategies: it’s physically not possible for me as a start-up business.

Marketing Challenges

As briefly mentioned in my previous point, effective marketing is crucial for business growth, but it’s a significant challenge for small businesses with limited budgets.

Traditional advertising is expensive, and while digital marketing offers more affordable options, it requires expertise and time—both of which are in short supply for many small business owners.

I rely on myself and the skills I acquired in previous work experience to scrape by, slowly but barely increasing my social following, even though I’m doing everything in my power to ‘get my business out there’.

However, I don’t want to slump and groan and see no hope for my business!

Despite challenges, I see that as a learning curve to gain more experience and resilience in tough times (but I would like an easy solution nonetheless).

Financial Access

Access to capital remains a critical issue.

Small businesses often struggle to secure loans or investment, especially those with limited credit history or collateral.

Without adequate funding, it’s challenging to invest in growth opportunities, cover unexpected expenses, or even maintain daily operations.

Customer Expectations

Today’s consumers expect high-quality products, excellent customer service, and fast delivery.

Meeting these expectations, although possible in an ideal world, is particularly tough for small businesses with limited resources.

Customer satisfaction is without a doubt one thing I am good at understanding. It’s almost like my third language.

With work experience in retail, I have ‘the customer is always right’ mantra drilled into my head.

I understand that one bad review or negative experience can have a disproportionate impact on small business reputation and bottom line.

Health and Safety Concerns

The COVID-19 pandemic has added another layer of complexity.

Health and safety measures, fluctuating restrictions, and changing consumer behaviours have forced many small businesses to adapt quickly.

The cost of implementing safety protocols and the potential for sudden lockdowns create ongoing uncertainty.

Conclusion

In summary, the current climate presents a unique set of challenges for small businesses.

Economic uncertainty, rising costs, supply chain issues, fierce digital competition, marketing hurdles, limited financial access, high customer expectations, and health concerns all contribute to a tough environment.

Despite their best efforts, many small businesses find that great effort only converts into small results.

Yet, the resilience and creativity of small business owners continue to inspire.

By understanding these challenges, we can better support and advocate for the small businesses that are the heart of our communities, including me!

Thanks for reading, and let’s keep the conversation going. How are you seeing these challenges play out in your local small businesses?

See you next time,

Svetlana