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Aden Ferguson
Small businesses are the backbone of Inglewood’s economy, but today they face greater threats than ever before. From supply chain disruptions to inflation to changing consumer behaviors accelerated by the pandemic, 2024 presents many challenges for small business owners seeking to stay afloat. However, while the obstacles may seem daunting, experts say there are ways for small businesses to mitigate the threats and set themselves up for success.
The most immediate threat facing most small businesses is inflation and its accompanying price increases. Inflation in 2023 reached its highest rate in over 40 years in many countries. While inflation is projected to moderate somewhat in 2024, it will likely remain well above the targets set by many central banks. This means small businesses will continue to deal with more expensive raw materials, inventory, and other operating costs even as consumer spending slows. To counter inflation’s impacts, small businesses should look for ways to lock in prices with vendors and suppliers, when possible, cut unnecessary expenses, and delay major purchases until inflation eases.
Ongoing supply chain disruptions also present a major difficulty, making it harder for small businesses to obtain the products and components they need. Shipping delays, shortages of key materials, and logistics logjams can shut down operations and lead to lost sales. Building relationships with multiple suppliers and maintaining higher inventory levels are two ways small businesses can mitigate supply chain woes.
Changing consumer behaviors in the wake of COVID-19 presents yet another challenge. More consumers now expect multi-channel options, flexibility, contactless experiences, and hyper-convenience from businesses. Smaller operations often struggle to provide the seamless digital and in-person experiences that consumers desire today. Investing in digital capabilities and working to understand emerging consumer preferences are key for small businesses in 2024.
While the threats for small businesses seem ubiquitous, the outlook isn’t entirely bleak. Smaller, nimbler operations may have an easier time adapting to the post-pandemic world. Seeking help from local and government small business support programs, trade groups, or non-profit small business development centers can help owners implement plans to overcome challenges. With proactive strategy, creative problem-solving, and utilization of available resources, small businesses can emerge stronger.
The road ahead remains rocky, but small businesses are notoriously resilient. With inflation projected to moderate and consumer demand still healthy, light is at the end of the tunnel. By making smart investments in supply chain relationships, multi-channel experiences, and strategic adaptation, small businesses can mitigate threats and seize opportunities this year.
