Numbers Game: Small businesses worry about inflation and employee retention but lean into AI

In following larger trends in retail—layoffs, inflation, AI, etc.—it’s mostly the bigger players that get the most attention, but small businesses deal with all of these and often face larger obstacles.

For small businesses, major changes often mean “adapt or die,” as a new report from employee management software firm Homebase puts it. A majority (60%) of small business owners say inflation, interest rates, and a potential recession is “what keeps them up at night,” a 4% YoY increase.

• Plus, retaining employees is a major concern for 34% of owners, followed by bringing in new workers (33%) and supplier disruptions (32%).
• Just over 12% of small businesses are limiting inventory services or hours of operation to save cash.

“On top of all this, competition from big business has never been more fierce,” the report read. “But small businesses are mighty and rise to the challenge. With grit and determination, Main Street is constantly modernizing; there’s no other option.”

Millennial small-business owners are gravitating toward AI. One in seven millennial owners use AI in some way, as opposed to 28% of Gen X owners.