Small businesses struggle with costs, inflation, and regulations

Key takeaways

Inflation , tariffs and higher borrowing costs are squeezing small business margins.

Regulatory compliance costs are growing, impacting profitability and growth.

Labor shortages and skill gaps are intensifying operational challenges.

Experts recommend discipline, differentiation and careful cost management for survival.

For many small businesses, the math no longer adds up. Inflation, higher borrowing costs and mounting regulatory demands are converging to squeeze margins and chip away at profitability.

Two experts at Loyola University Maryland’s Sellinger School of Business, Jason Cherubini, executive-in-residence of finance, and Sam Adams, assistant professor of finance, agree that it’s not so easy to be a small business owner in today’s challenging environment.