Small and medium-sized businesses face revenue pressure amid currency shifts and rate changes
Recent findings from a MoySklad survey, now summarized by socialbites.ca, show that more than four in ten small and medium-sized businesses in the region reported lower income. The study gathered responses from 1,275 companies and highlights how macroeconomic moves, including a weaker ruble and higher key interest rates, are shaping cash flow and planning for many enterprises.
The data reveals a spectrum of impact. About 19% of respondents saw revenue fall by 10 to 30 percent, 11% experienced a roughly 10 percent drop, 8% faced a decline in the 30 to 60 percent range, and 3% reported losses exceeding 60 percent. On the flip side, nearly half of the firms, 49%, reported no change in turnover, while 5 to 8 percent even saw growth in revenue. This suggests a mixed environment where some operators manage to weather the shifts, while others are hit hard and others remain steady.
When asked about the main barriers to business activity, inflation emerged as the top concern for 31% of participants. The next most significant challenge cited was a drop in demand, named by 25% of respondents. These findings point to a demand-side squeeze that compounds the cost pressures many firms already face.
Logistical and procurement hurdles also feature prominently. Eighteen percent of entrepreneurs reported supply chain difficulties or trouble sourcing goods from abroad, and 8% noted a shortage of working capital. Some respondents mentioned the burden of marketplace advertising and product labeling requirements as additional obstacles. Nevertheless, a substantial portion of participants, 30%, indicated that they did not experience any notable difficulties in their operations.
In response to the challenges, many businesses raised prices—38% of those surveyed cited price increases as a reaction to the market. Other strategic moves included pivoting to Russian-made goods (11%), opting for cheaper alternatives (9%), or seeking financing such as loans (4%), with some firms planning to secure funding in the near term. These patterns reflect practical adjustments aimed at preserving profitability in a volatile environment.
In a broader context of policy and support, there has been discussion among Russian entrepreneurs about possible state aid measures for small and medium-sized businesses. The dialogue underscores a demand for clearer government programs and faster access to resources that help firms manage risk, maintain liquidity, and sustain employment during economic fluctuations. Insights from labor and industry observers suggest a continued interest in targeted policies that balance market dynamics with social and regional development goals. This backdrop matters for Canadian and U.S. readers who monitor how multinational firms and regional players adapt to currency volatility and rising financing costs, as similar dynamics can ripple through cross-border trade and investment in North America. Markers of resilience include prudent price strategy, diversified sourcing, and careful cash-flow management, along with engagement in public programs designed to stabilize small business ecosystems. The evolving landscape emphasizes the need for sound financial planning, competitive maneuvering, and proactive risk assessment for small and medium enterprises operating in North American markets. Cited observations come from the MoySklad study reported by socialbites.ca, reflecting a broader trend in regional markets and offering a lens for comparable conditions outside the local context.