Small and medium-sized business (SME) entrepreneurs raise prices for consumers faster due to high costs than large companies. Six out of ten entrepreneurs indicate that increasing prices to compensate for rising costs of raw materials, energy and operating equipment is the most important way. Within large companies, where more than 250 people are employed, this happens in half of the cases.
This is evident from the ‘State of SMEs 2022’ study, in which Statistics Netherlands (CBS) is collaborating with the Chamber of Commerce, the Economic Institute for the Construction Industry, MKB-Nederland and VNO-NCW.
Another way entrepreneurs try to save costs is by streamlining work processes. A fifth of SMEs indicate they are working on it, compared to a third of large companies. Almost half of entrepreneurs expect a further increase in selling prices in the next three months. This is especially taken into account in the construction.
This will also be the case in trade. In the restaurant business, small business owners expect to raise prices more often than large restaurant establishments. On balance, 47% of small businesses expect to have to. Large companies account for a fifth of all cases. Entrepreneurs in the rental and real estate trade sector less often expect a price increase. In some cases there will be a drop in prices for smaller companies.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
