Economic challenges are faced in everyday life; it affects all aspects of our lives, making
people feel the burden of higher costs and the tightening of their finances.
A fluctuating and unstable economic environment is making the currency lessen in value –
affecting the prices of everything.
Small businesses are hit hard by insufficient sales and rising costs of materials and products. This leads to decreased consumer demand while also bringing tighter margins.
Lethbridge business owners have noticed traffic has not been as heavy over the past year, leading to sales dropping. Mckayla Rebalkin, owner of a small business, Tiger Bee Boutique, explains how inflation has impacted her small business.
“I feel like over the last specifically year, it’s been harder in the fact that our economy is so bad right now with inflation, that our consumers are being very mindful. People are limiting themselves to a budget,” said Rebalkin.
This business owner shares how times have changed from when she first opened her business; “consumers would spend more,” says Rebalkin.
Owners have had to navigate and adjust to the current economy and deal with increased costs and tight margins. Small business owners are starting to feel the pinch of rising expenses – which is making it
challenging to have sustainability.
Business owners are trying to adapt to different business strategies, while buyers are aware of their spending and prioritizing their budgets.
Small business management are looking for diverse ways to make it affordable for consumers while also making a profit. According to an article by Inflation rate drops to 1.6 percent, published on CBC, basic living has grown, “even as inflation has cooled off.”
Inflation often leads to a tight budget for both consumers and the business. Trying to meet the needs of the consumer may be tough for both parties. Many businesses have had to close due to the difficulty in the current economy. While having a sale rack can be fun for the consumer, it often means that the business is not selling a lot of products.
“We don’t normally have that amount of clothes on the sale rack,” says an employee of Tiger Bee Boutique, Maria Pineyrua.
Inflation is making it challenging for small business owners to plan and budget. Owner of Uglistuffs, Taylor Swamby, understands the struggles of other business owners.
“It’s a lot to deal with especially when you’re still trying to run a business or run it to the best of your ability, and the sales that you expected aren’t coming in. I don’t think people know what we are dealing with,” says Swamby.
Swamby also points out that it is not just business owners trying to strive in these conditions, it’s also consumers trying to watch their pennies.
“I just know there’s a lot of people buying a lot less and people buying less things that they, you know, for like, frivolous purchases. I’ve noticed a lot of people say, I have to buy groceries this week so I can’t come in.”