Two in three small businesses have raised their prices three times or more in the last five years –- with a quarter set to put them up again before the end of summer.
Research of 500 business owners revealed supplier costs (62 per cent) and energy bills (61 per cent) are the most common reasons for passing costs on to customers in recent years.
Nearly half (49 per cent) also factored in staff wages before increasing their prices during this period.
Over the past 12 months, small business owners have seen their outgoings rise by nearly 17 per cent on average, while the previous five years have seen monthly energy costs increase by an average of 23 per cent.
Now, 82 per cent are bracing themselves for further increases throughout the rest of 2026.
Two-thirds (68 per cent) are fearful for their future due to rising costs, with energy (38 per cent), inflation (32 per cent) and supplier costs (27 per cent) cited as the biggest concerns.
According to the research, commissioned by Smart Energy GB, 88 per cent of business owners added raising prices is a last resort.
Although 86 per cent have made changes behind the scenes to avoid passing costs on to customers wherever possible.
Many have cut back on non-essential spending (31 per cent), absorbed costs by reducing profit margins (30 per cent), and even reduced their own salaries (28 per cent).
A quarter have worked to cut their energy usage, while 23 per cent have entered negotiations with suppliers to secure better deals.
Victoria Bacon, a director at Smart Energy GB, said: “We can see many small business owners are doing everything they can to manage rising running costs, while limiting the impact on their customers.
“When it comes to managing bills, a smart meter can help business owners track their energy use and identify where they might be able to save some money on their energy costs.
“It can be a helpful tool for small business owners having to manage cashflow and budgets, and it’s quick and easy to get a smart meter installed.”
It also emerged that while 34 per cent believe customers have generally been understanding when prices have risen, 81 per cent remain worried by the prospect of increasing them again.
Of these, 38 per cent acknowledge that customers are already struggling with the cost of living and may not be able to stretch their budgets further.
A further 36 per cent fear their customer base could start to look elsewhere for cheaper alternatives.
A separate survey of 2,000 adults explored how much Brits are willing to spend on everyday items before drawing the line.
On average, drinkers are willing to pay £5.45 for a pint of beer and £6.23 for a glass of wine.
Consumers also cap spend at £3.99 for a takeaway coffee and £4.79 for a sandwich from a local café or bakery.
When it comes to meals, those polled are willing to spend around £11 on a full English breakfast or fish and chips, but are happy to pay over £15 for a Sunday roast.
More than half (54 per cent) admitted they have cut back on discretionary spending in recent years.
Eating out (55 per cent), new clothes (51 per cent) and takeaways (49 per cent) are among the most common areas where budgets have been reduced.
Yet despite this, 84 per cent still believe it is important to support their local independent businesses, the survey carried out by OnePoll found.
Six in 10 (61 per cent) want to do so because it supports the local economy, while 56 per cent are eager to play their part in protecting jobs.
Another 53 per cent say they want to help prevent shops on their local high streets from closing.
