Survey: 68% of Small Business Owners Say Gas Price Spikes Have Stymied Their Recovery 

Spikes in gas prices have already taken a toll on small business owners trying to bounce back from the pandemic, inflation, labor shortages, and other challenges. 

In fact, Alignable's Gas Price Poll of 6,439 small business owners surveyed from 3/13/22 to 3/27/22 showed that 68% say gas price spikes have had a "very significant" negative effect on their business recovery.

Not surprisingly, some industries are much more affected than others, with small business owners in sectors including transportation, cleaning services, journalism, beauty salons, and plumbing feeling the most financial pressure.

Given their dependence on fuel, a whopping 91% of small business owners in the transportation industry (Uber and Lyft drivers, truckers, taxi or limo company owners, etc.) have been highly impacted by gas prices going up.  

And based on their extreme fuel needs, 67% of the business owners in aviation or aerospace reported an increase in financial hardship, as well.

Beyond Transportation & Aviation: Remaining Top 10 In The Hot Seat

Here's the full rundown on the percentages of SMBs in other categories that make up the Top 10 industries struggling with increased gas prices. 

• 90% of cleaning services
• 86% of news media outlets
• 79% of beauty salons
• 78% of plumbers
• 73% of repair shop owners
• 71% of manufacturers
• 66% of restaurants
• 64% of retailers.

While gas prices were on the rise earlier this year, more industries were affected after the U.S. sanctions on Russian oil and gas forced prices to skyrocket to new heights.

Cleaning (90%) and plumbing (78%) services rely on their workers driving -- often long distances to and from clients' homes or corporate facilities -- all day long, every day, even on weekends, in many cases. 

Adding up the increased operational expenses from all of that driving, over the course of a week, would be devastating to the margins of these types of small businesses. 

Salons, Restaurants, Retailers & Repair Shops

Beauty salons, restaurants, retailers, and repair shop owners have been affected a few ways by the gas price spikes.

First off, the increased trucking expenses of goods small businesses in all of these sectors need to sell are all passed onto them. 

And for restaurants that have a lot of delivery business (which also went up during the pandemic), the added fuel expenses incurred by their drivers are having a negative impact on their businesses, as well.

Considering that 83% of restaurant owners said they were still recovering in early March, just imagine how much extra gas expenses are setting them back in their recovery.  

Finally, for all of these industries, higher gas prices also mean fewer customers spending the extra money it takes to drive to their establishments for a haircut, a meal, or a new dress.

And repair shops could see less business as gas prices remain high, because consumers are cutting back on unnecessary trips, reducing the wear and tear on their cars.

Looking at other industries, the only categories that were below the 60% mark included professions that rely on a higher percentage of "desk work" or remote work, such as lawyers (56%), accountants and financial planners (58%), and those in marketing and advertising (57%). 

All Demographic Groups Struggle With Gas Prices

Similar to other charts for other polls, we see that minority-owned businesses are having more challenges with the increase in gas prices, as nearly three out of four (74%) reported "very significant" negative impact on their business growth.

However, veterans aren't far behind with 70% of those businesses struggling with higher gas prices. 

And leaders of 63% of women-owned and 66% of nonminority-owned companies also voiced consternation over the gas prices and their effect on their margins, overall financial health, and recovery.

What's Happening In Key States or Provinces?

A few geographic hot spots emerged during this poll, but numbers are quite high across many states and provinces.  

That said, Michigan, Texas, Arizona, and Georgia top the list of states where more small businesses are feeling the negative effects of gas price spikes. 

Some 78% of SMBs in Michigan complained that the gas prices are already hurting their recoveries. To put this in context, Michigan is often at or near the top of our list for small business rent delinquency and for states having the hardest time recovering. So, yet again, Michigan is atop another list of small businesses struggling, which must be frustrating for that state's small business residents.