Inflation is the top challenge for small business: Chase for Business CEO

Sticky inflation is the biggest challenge facing small business owners, Chase for Business CEO Ben Walter told Yahoo Finance during the company's Make Your Move Summit in Frisco, Texas.

“Small businesses really need inflation to come under control,” Walter noted, highlighting that small businesses are at a big disadvantage compared to larger competitors when it comes to buying power.

Kyle Noonan, co-founder of FreeRange Concepts — the parent company behind several "eatertainment" ventures — called elevated commodity costs a "big challenge" that's further pressuring the company's profit margins.

“Margins in our business are notoriously thin, and they’re getting thinner and thinner by the day,” Noonan remarked to Yahoo Finance.

Mama Moore's Gourmet Popcorn founder Debra Moore, who makes fresh batches of gourmet popcorn daily, echoed Noonan’s concerns. Moore told Yahoo Finance high inflation is "very scary" as she now pays 200% more for some of her essential ingredients.

The Fed may not be done raising rates yet, JPMorgan Chase CEO Jamie Dimon told Yahoo Finance in an exclusive interview. Interest rates could still go up 25 to 75 basis points more. "I'm not predicting that. I just think there's a higher chance than probably other people think," he said.

Skyrocketing costs have forced Moore, and other business owners, to adjust business plans in a bid to survive. One of the ways Moore has looked to mitigate the pressure is by expanding her vendor base to ensure better pricing of supplies.

And the issue is widespread — far beyond the restaurant and food industry. Nearly 80% of small business owners say their expenses have increased by 6% or more, according to Chase’s Midyear Business Leaders Outlook. In response to higher costs, raising prices on products and cutting expenses top the list of ways entrepreneurs are trying to limit the effects.

And inflation, while the most common, is far from the only concern among small businesses. Hiring challenges, along with fears of recession and available credit, are among a long list of issues keeping business leaders on high alert, according to Walter.

“They want to borrow … they want to expand, but they need to find the people to be able to do it,” Walter added. “That's a real challenge.”

Seana Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Email seanasmith@yahooinc.com.

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