Poll: Impact of Inflation, Labor Shortage, Supply Chain Impact and More on Small Business Market

San Francisco, CA - BizBuySell, the Internet's largest business-for-sale marketplace, surveyed near 2,400 small business owners and entrepreneurs to understand how topics such as omicron, supply chain issues, labor shortages, and inflation are impacting the small business market. The survey also gauges the motivations and readiness of those in the acquisition market.

Business Owners

Are you a Baby Boomer (born between 1944 - 1964)?

• Yes - 40%
• No - 60%

How was your business impacted by the pandemic in 2021?

• Positively impacted (Sales increased) - 25%
• Negatively impacted (Sales decreased) - 51%
• No impact - 24%

How is the Omicron variant negatively impacting your business? (Select all that apply)

• Positively impacted (Sales increased) - 4%
• Negatively impacted (Sales decreased) - 46%
• No impact - 50%

How is the Omicron variant negatively impacting your business? (Select all that apply)

• Declining sales or customer base - 64%
• Staff shortages due to employees getting infected and forced to quarantine - 44%
• Employees quitting and/or Inability to hire due to concern of getting sick - 29%
• Increased costs due to pandemic mitigation (testing, PPE, compliance, etc.) - 29%
• Increased costs due to adapting business to pandemic (delivery, parklets, etc.) - 46%
• Supply shortages due to vendors impacted by COVID - 52%

Have you considered temporarily closing your business due to the Omicron variant?

• Yes, and have temporarily closed - 15%
• Yes, but have not temporarily closed - 20%
• No - 65%

Which of the following best describes how recent supply chain issues are negatively impacting your business?

• My business has not been impacted by the recent supply chain issues - 21%
• My business was impacted, but is not now - 7%
• My business is being impacted, but issues are improving - 25%
• My business is being impacted, and issues are not improving - 23%
• My business is being impacted, and issues are getting worse - 9%
• Not applicable - 15%

Which of the following best describes how recent labor shortages are impacting your business?

• My business has not been impacted by recent labor shortages - 30%
• My business was impacted, but is not now - 7%
• My business is being impacted, but issues are improving - 15%
• My business is being impacted, and issues are not improving - 22.06%
• My business is being impacted, and issues are getting worse - 9%
• Not applicable - 17%

Which of the following best describes how recent inflation is impacting your business?

• My business is not impacted by recent inflation - 18%
• My business was impacted, but is not now - 4%
• My business is being impacted, but issues are improving - 14%
• My business is being impacted, and issues are not improving - 34%
• My business is being impacted, and issues are getting worse - 21%
• Not applicable - 10%

If you were to sell today, how prepared are you to sell your business?

• Not at all prepared - 40%
• Slightly prepared - 22%
• Moderately prepared - 25%
• Extremely prepared - 13%

If you were to sell today, would you have 3+ years of clean financial records to support your asking price?

• Yes - 63%
• No - 17%%
• I have been in business for fewer than 3 years 20%

Do you know the value of your business?

• Yes, approximately - 55%
• Yes, I’ve had my business professionally appraised recently - 8%
• No - 38%

Are you looking to buy another business?

• Yes - 62%
• No - 38%

Business Buyers

Are you part of the Great Resignation? (Voluntarily left your job in 2021 to seek a new opportunity)

• Yes - 21%
• No - 79%

Have you previously owned a business?

• Yes - 53%
• No - 47%

Why do you believe now is the right time for you to buy a business? (Select all that apply)

• There are a variety of good businesses to choose from - 23%
• I believe I can get good value at a favorable price - 27%
• I see an emerging trend or market opportunity I want to capitalize on - 27%
• Financial or tax benefit reasons - 25%
• I believe we will be entering an improving business environment - 30%
• I want to take advantage of low interest rates - 22%
• I am recently unemployed - 13%
• I am unhappy with my current job - 25%

What are your biggest macro-economic concerns over buying the type of business you’re seeking? (Select all that apply)

• Future variants causing future business restrictions - 25%
• Inflation and high costs of materials/goods cutting into profits - 43%
• Supply chain issues interfering with getting the materials I need - 38%
• Labor shortage making it difficult/expensive to attract/retain qualified workers - 49%
• Changing customer preferences or market shifts - 23%
• I have no macro-economic concerns - 18%

Which of the following is mandatory in your business purchase? (Select all that apply)

• Profitable with strong financials - 60%
• Discounted due to poor financials - 18%
• Great location - leased - 36%
• Great location - owned - 38%
• Well-known in the market - 26%
• Strong online presence - 18%
• Great physical condition - 19%
• Trained, skilled employees - 37%
• Seller financing - 34%

Other than cash, how will you purchase the business (please select all that will be involved)?

• Cash only - 25%
• Seller financing - 53%
• SBA loan - 51%
• Bank loan - 51%
• Raising money from investment partners - 22%

How familiar are you with the business buying process?

• Extremely familiar - 10%
• Very familiar - 19%
• Somewhat familiar - 41%
• Not so familiar - 19%
• Not at all familiar - 10%