Global Survey Finds Small Businesses Trapped in Growing “Pressure Gap” as Costs Rise and Payments Slow

Bookipi study finds that SMBs are feeling the squeeze from rising supplier costs, late payments, reduced demand, and fear of climbing prices

SYDNEY, June 24, 2026 (GLOBE NEWSWIRE) -- Small businesses worldwide are facing a widening financial “pressure gap” due to global instability, according to a new global survey from Bookipi, a global platform offering a comprehensive suite of AI-powered business management tools tailored for small businesses (SMBs) and solopreneurs. Tariffs, inflation, geopolitical instability, and trade tensions are driving costs higher, making customers more cautious, delaying payments, and prompting small business owners to hesitate before raising prices to protect profits.

Bookipi’s latest survey, The Cost of Doing Business: A Global Small Business Snapshot, gathered responses from more than 500 small business owners and sole traders across 57 countries, including the U.S., the U.K., and others. The findings indicate that macroeconomic and geopolitical disruptions are directly affecting small businesses, as well as financial markets, enterprises, and global supply chains. Socioeconomic disruptions are affecting the smallest end of the economy: tradespeople, cleaners, delivery businesses, freelancers, service providers, and local operators who have limited leverage over suppliers and customers.

Nearly 9 in 10 of small businesses surveyed said recent geopolitical events have had a direct impact on at least one aspect of operations. Of the businesses surveyed, 69% said instability has increased the cost of goods, materials, or supplies; 32% reported economic uncertainty affecting business decisions; 30% said customer demand has fallen.

"Increasing prices in fuel affect my business a lot since I have to go to the client. Which increases my prices, and since clients are facing the same struggles they are less inclined to hire the service."

— Joshfstudio, United States

"Lots of jobs are on hold because clients are afraid of the future, and that pattern follows all the way down to us. There's plenty of work, but the majority is on hold."

— Diablos Millwork Installation, United States

Recent cost increases are widespread. Seventy-four percent of respondents report that vehicle, fuel, or travel costs have increased over the past six months. Fifty-two percent say the cost of tools, materials, or equipment has increased, while 39% report higher utility costs.

Only about 5% said they had not observed any cost increases.

The survey also highlights what many small business owners describe as a pricing imbalance. Seventy-eight percent of respondents agreed that large suppliers are quick to raise prices but slow to pass on savings when costs fall. Economists call this the “rocket and feather” effect, which leaves small businesses exposed when costs rise, but they receive little relief when market conditions improve.

“Small businesses are the last link in the economic chain, but they are feeling more economic pressure from every direction,” said Tim Lee, founder and CEO of Bookipi. “SMBs feel an immediate impact from higher fuel, material, and supplier costs, but they can’t always pass those increases on without risking customer relationships. That creates a pressure gap where small business owners are forced to protect customers, chase payments, and absorb additional costs at the same time.”

Summary From 500 Respondents Across 57 Countries:

78% say suppliers raise prices quickly but are slow to lower them
Nearly 9 in 10 SMBs say recent geopolitical events have directly impacted operations
69% say instability has increased the cost of goods/materials
78% say suppliers raise prices quickly but are slow to lower them
53% have had invoices go completely unpaid
More than half report that 25% of invoices arrive late
1 in 5 need to raise prices but are afraid of losing customers

Small business customers are under pressure as well. One in five small business owners said they wanted to raise prices in the past six months but feared losing customers.

"With the fuel & material cost on a steady rise, the job itself costs more to do, but with food and utilities on the rise as well, with no pay raise for most of the working class, if I was to raise my prices to compensate, then at least half of my customers couldn't afford it. And that would mean more estimates that fail to move forward, which ends up as wasted & unpaid man-hours."

— Mad Dog Mobile Home Service, United States (Construction & Trades)

Another 32% said they had already raised prices. “Small businesses, regardless of the industry they’re in, are feeling the pressure gap between what they are paying and what they feel safe charging,” Lee said. “That gap is where margins disappear, cash flow tightens, and owners start making difficult choices about whether to raise prices, delay investment, or absorb another hit.”

"It's not always easy to proportionally pass these costs on to the customer. I usually end up eating some of the costs just to maintain workflow and keep my repeat customers satisfied."

— J. White, Hilltop Concrete & Construction LLC, United States (Construction & Trades)

Forty-five percent of small business owners cite late supplier payments as a major concern. Twenty-seven percent said clients have become less punctual in paying in the past six months, compared with 19% who said payment behavior has improved.

Cash flow Issues are contributing to late payments to suppliers. Sixty percent of business owners surveyed said more than 25% of their invoices are paid after the due date, and 41% said more than half are paid late. More than half said they have had at least some invoices go unpaid entirely.

“Late payments are not just an administrative headache, but now they are expected,” Lee said. “When invoices are delayed or go unpaid, small businesses effectively finance their customers’ cash flow problems. At a time when costs are rising and demand is softening, unpaid bills can quickly become a survival issue.”

Bookipi’s findings show that the small-business economy is being affected by overlapping pressures. Fifty-two percent of respondents cited rising costs as a major concern, while the same share cited finding consistent work or managing unpredictable income. Forty-five percent cited cash flow or late payments, 34% cited competition or pricing pressure, and 33% cited global economic uncertainty.

About the Survey

The Cost of Doing Business: A Global Small Business Snapshot was conducted online by Bookipi between April and May 2026. More than 500 responses from small business owners, freelancers, and sole traders were received, representing 57 countries and 17 industries, including construction and trades, cleaning and maintenance, transport and delivery, technology and digital services, retail, hospitality and professional services.

About Bookipi

Bookipi is a global invoicing platform built for small business owners, freelancers and sole traders. Founded by Tim Lee, Bookipi today serves users across more than 180 countries, processing millions of invoices each month. The platform offers invoicing (including quotes and estimates), online card payments, Tap to Pay to receive payment in-person, cash flow reporting, inventory management, and a suite of advanced web tools to help small businesses manage customers, launch their website, and more.

For more information, visit www.bookipi.com.

Media Contact:
Michele Nachum. Firecracker PR
michele@firecrackerpr.com
425-698-7477

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.