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Rising prices are impacting small business on many fronts: energy, food, products and services are not only increasing for the corner business but the consumers they serve. The current economic downturn leaves consumers with less disposable income for the products and services these small firms bring to market. Today, the House Committee on Small Business examined how the trends are affecting the nation’s economic food chain. Committee Members heard from a panel of entrepreneurs, and called for a national dialogue to yield sound policy and a full understanding of variables driving prices for such items as bread, eggs and milk.
Small firms feel the impact of sudden increases in business expenses more harshly than their larger counterparts. At today’s hearing, the American Bakers Association noted a bag of bread flour cost $17 in 2006. That same bag now costs a small business $52. For many entrepreneurs, such radical jumps in costs can mean the difference between turning a profit and being forced to shut their doors.
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