Understanding the Lived Experience and Adaptive Meaning of Inflation among Small Business Owners in the Post-Pandemic Indonesian Retail and Service Sectors

Abstract

Economic phenomena such as inflation have traditionally been studied through quantitative models that prioritize measurement and prediction over human meaning and experience. Within this context, understanding how individuals particularly small business owners live through and interpret inflation remains an underexplored aspect of economic behavior. Although extensive research exists on price dynamics and policy interventions, little is known about how inflation is experienced as a subjective, emotional, and moral phenomenon that influences entrepreneurial decision-making. This study addresses that gap by asking: How do small business owners experience and make sense of inflation in their everyday economic lives? Using an interpretative phenomenological approach (IPA), this research examines the lived experiences of twelve entrepreneurs operating in post-pandemic inflationary conditions.Data were collected through semi-structured, in-depth interviews lasting between 45 and 70 minutes each, conducted over a two-month period. The analysis followed established IPA procedures, including transcript immersion, initial noting, formulation of emergent themes, clustering of superordinate themes, and iterative cross-case synthesis. The results reveal that inflation is experienced not merely as an economic disruption but as a multifaceted human event characterized by adaptive rationality, social interdependence, and moral negotiation. Three measurable thematic patterns emerged: (1) adaptive pricing and resource-allocation strategies shaped by real-time emotional appraisal, (2) increased reliance on social and supplier networks as a compensatory mechanism for uncertainty, and (3) moral reframing of business identity expressed through fairness-oriented pricing and community-oriented decision-making. Participants demonstrated a sense of collective resilience and redefined their economic identities by integrating ethical and relational considerations into their business practices. These findings expand the understanding of inflation from a mechanistic economic concept to a lived, interpretive process shaped by trust, emotion, and social meaning. The study contributes to the growing field of phenomenological economics and underscores the importance of human-centered approaches for developing more empathetic and contextually grounded economic policies.