Inflationary pressures mean 80% of businesses anticipate the prices of their goods and services will increase in the year ahead, according to the Addleshaw Goddard Scottish Business Monitor.
The report, out today, revealed that one in five Scottish companies expect to reduce operations this year due to the increase in energy prices.
It reveals that only 7% of firms are expecting strong growth during the next 12 months.
Other challenges include the ongoing impact of Covid and both attracting and retaining staff.
Read the full report here.
The report, produced in partnership with the University of Strathclyde's Fraser of Allander Institute, said more than half of Scottish businesses were finding it difficult to source the goods and services they required.
And more than 80% were struggling to recruit the staff they needed, while almost a quarter were also finding it difficult to retain their own people.
Mairi Spowage, director of the Fraser of Allander Institute, said: "These results show us that despite the reintroduction of some restrictions over the Christmas period, business optimism remained throughout the final quarter of 2021.
"However, inflationary pressures and rising energy prices are a concern for firms.
"Growing uncertainty throughout global supply chains is also causing problems for businesses across all sectors, particularly those in industries such as manufacturing."
David Kirchin, head of Scotland at Addleshaw Goddard, said: "As we gradually move away from the major restraints brought on by the pandemic, these latest results show that Scottish firms expect business volume to increase.
"However, they also see challenges ahead, whether linked to rising energy prices, supply-chain challenges or the hiring and retention of people."
More than 400 businesses responded to the latest survey in December and January, from across the Scottish economy.