Small businesses worry they will be hit hardest by inflation, research finds.
According to a study of 292 businesses by bank Aldermore, 80 per cent of firms are concerned their suppliers are going to force above-inflation cost increases on them.
At the same time, only 45 per cent of companies feel they will be able to increase their own prices.
Phillip Monks, CEO of Aldermore, says, ‘Small businesses are worried that the lack of negotiating clout with both their suppliers and their customers means that they are going to come off worst from the current spate of inflation.’
He adds that small businesses have worked ‘incredibly hard’ over the last year to repair and improve their margins so they will be particularly worried if the current levels of inflation do not fall.
‘Obviously these are not the inflation rates of the 1970s and 1980s but for some sectors, such as transport or food manufacturing, inflation is already causing serious problems,’ he concludes.
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