How has inflation affected business owners?

Inflation and economic crises are two connected phenomena that can have a big impact on the economy. Inflation stunts the purchasing power of consumers, meaning transactions decline, and when goods and services are no longer bought or sold, the economy slows down. It affects consumers as well as business owners. As Nepal grapples with economic downturn, Evana Manandhar of ApEx talked with three business owners to know how they are faring during these trying times.

Ajab Prasad Gupta, 38

Inflation and the economic crisis have significantly affected my life. The rising prices of goods and services have made it harder for me to purchase the inventory I need for my business. For instance, the cost of raw materials and ingredients I use for my street food business has gone up, squeezing my profit margins. Moreover, many potential customers are feeling the pinch of the economic crisis, and they have less disposable income to spend on street food and other non-essential items. This has led to a decline in sales, making it challenging for small business owners like me to make ends meet. I’ve had to adapt by offering smaller portions or searching for cheaper suppliers, but it's been tough maintaining a steady income.

Ramila Manandhar, 45

 

The impact of the ongoing economic crisis has been felt by all, and my business is no exception. One of the most significant hurdles has been the sharp decline in demand and sales, leading to a noticeable dip in profits. Customers have been cautious with their spending, and the uncertainty surrounding the pandemic has made it difficult to predict market trends accurately.

Another critical issue we’ve faced is a decline in the quality of some suppliers, products, or services. The disruptions, first caused by the Covid-19 pandemic and now by the Russia-Ukraine war, have led to inconsistencies in the supply chain, affecting the overall quality and reliability of our products and services. Maintaining a high level of quality has become a constant struggle. While navigating these unprecedented challenges has been far from easy, it has also been an opportunity for growth and adaptation. The experience gained during these trying times has equipped my business with resilience and resourcefulness that will serve us well in the future.

Dinesh Shresthacharya, 53

Inflation and the economic crisis have had a significant impact on my life. The rising costs of goods and services have made it more expensive to restock my store, eroding my profit margins. Moreover, customers who are feeling the financial strain due to the economic crisis are spending less on non-essential items, leading to a decline in sales. On a personal level, the increased cost of living has made it challenging to manage my household expenses, including rent and utilities. It’s a constant struggle to adapt to these economic challenges and maintain a stable business while ensuring my own financial stability. Additionally, the uncertainty stemming from the economic crisis and inflation has made long-term planning for my business and personal life increasingly difficult. It’s challenging to predict how the market will evolve or when economic conditions might improve. This instability has created a sense of anxiety and stress, affecting both my work and personal well-being.