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Naturally, small businesses face a lot of common and obvious challenges throughout their lifespans. One clear challenge is small businesses having to compete with larger ones, putting their tiny budgets up against bigger ones. You can conjure up a series of other issues that are somewhat exclusive to small businesses, but they will continue to exist throughout time. 

The purpose of today’s post is to focus on 2022. To be specific, what are the biggest challenges small businesses are likely to face during this year? For many, it’s seen as the year where things slowly return to ‘normal’ and the business scene can get back to where it was before the pandemic. However, there are still some unique issues that impose themselves upon you…

The great staffing shortage

Arguably the biggest problem for small businesses this year will be the great staffing shortage. This comes off the back of the pandemic, with a unique situation arising where there are more job vacancies than unemployed people. The simple fact is that a lot of people have left their jobs and aren’t interested in them anymore. There was an interview with restaurant owner Jon Sears that touched upon a few reasons why this is the case. A key one is that employees have re-assessed their careers after being in multiple lockdowns. They want to pursue something new, but they also feel underappreciated at work. 

For small businesses, this can be countered by emphasizing employee welfare and benefits. Provide your employees with strong benefits to keep them at the company and encourage people to join your ranks. If an employee feels protected and valued, they are more likely to stay for the long term.

The supply chain shutdown

Another huge problem for small businesses is the slowing down of the supply chain. Every business will have suppliers that supply them with specific things. This could be raw materials you use to turn into products, or it could be products that you sell. Either way, your suppliers also have suppliers - hence the supply chain is born. The challenge in 2022 is that there is still a pandemic all over the world. Things might be fine where you are, but in countries where your suppliers operate, there could still be harsh restrictions. Add to this the ongoing conflict in Europe, and there are genuine concerns over further supply chain issues. 

When the supply chain shuts down, it can be impossible for a small business to function. There is one possible way of handling this, and it’s by opting for local suppliers. In many cases, this can be more expensive. However, by working locally, you don’t have as many risks to the supply chain, reducing the chances of it slowing or shutting down. 

Small businesses can face each of these problems individually, or both together at once. As the world still settles back into some semblance of normality, these concerns will continue to present themselves. The good news is that they should eventually fade away. The tricky part is learning how to combat them until this happens.