Insight

The cost of doing business 2022q2 : Data from the Small Business Price Index

ERC Insight paper

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Associated Themes
  • Business Growth
  • Productivity and performance

Small businesses with less than 50 employees employ 12.9m people (48 per cent of total private sector employment) and account for 36 per cent of private sector turnover. The Small Business Price Index (SBPI) provides an indication of the cost of doing business among this critical group of firms.

The SBPI suggests that small business costs increased more rapidly in 2022q2 than in any period since the start of the SBRI series in 2008 (Figure 1). Small business costs rose 4.4 per cent in 2022q2 alone, following a 4.3 per cent increase in 2022q1. Both represent a higher rate of small business cost inflation than at any period since 2008.

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