Small and mid-sized business owners, like most American consumers, are increasingly concerned about economic conditions in the U.S., with two-thirds of them expecting a recession in the next six months, according to new data from Nationwide. Of those who expect a recession, more than 70% say it will be similar or even worse than the Great Recession of ’07 – ’09.
Just 19% of small business owners and 39% of mid-market business owners rate business conditions in the U.S. economy positively, down 8 points and 19 points, respectively, since September 2022.
Inflation, interest rates top of mind
Persistent inflation and rising interest rates continue to impact their businesses, with nearly three quarters of small and mid-size business owners citing inflation as their most significant challenge, up 11 points since September 2022.
Increased interest rates are right behind with 62% of mid-market business owners and 50% of small business owners saying it’s a continued challenge (up 4 points and 15 points, respectively, from fall 2022).
Despite their grim views of the economy, most business owners (small-55%; mid-market-74%) are surprisingly optimistic about their own business operations.
74% of mid-market and 55% of small business owners rate their business conditions as good or excellent.
Returning to pre-pandemic practices
Business owners are even reversing some actions taken over the course of the pandemic, including:
Hiring more, laying off less:
21% of small businesses owners say they have hired more workers, up 8 points from the fall.
Only 6% of small businesses have laid off employees, a drop of 4 points from the fall.
42% of mid-market owners have hired new workers, an 18-point jump.
18% of mid-market businesses conducted layoffs within the past 6 months, down 5 points from the fall.
Managing supply chain disruptions:
21% of small businesses say supply chain disruptions are among their biggest challenges, a drop of 8 points from the fall.
31% of mid-market…
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