Survey: Two-Thirds of Small Businesses Expecting Recession
Open business sign

Survey: Two-Thirds of Small Businesses Expecting Recession

A new survey from Nationwide finds that small businesses in the U.S. are increasingly growing concerned about the economy — even as they continue to roll back pandemic-era cost-cutting measures.

The survey results:

Headlining Nationwide’s survey is the fact that 68% of respondents stated that they expected a recession to hit within the next six months. What’s more, of those small businesses who anticipated a recession, 71% predict that it will be similar to or even worse than the “Great Recession” that the U.S. endured from 2007 to 2009.

Meanwhile, only 19% of small businesses express optimism about the current economy, marking an eight-point decline from a similar survey conducted in September 2022. However, on a local level, respondents were a bit more positive, with 40% saying conditions were “good” or “excellent” in their city/region. That’s up 4 points from the previous survey.

Asked whether their businesses were threatened more by inflation or the possibility of a recession hitting later this year, small biz respondents were split 60% to 40% respectively. Those with mid-sized businesses were more likely to pick “inflation” in that match-up, with two-thirds choosing that option.

Despite current challenges and recession fears, the survey also found that small businesses are continuing to reverse cuts they made in recent years. In fact, 21% of respondents report hiring workers in the past six months compared to 13% who said the same in September. On the other end of the spectrum, only 6% of small businesses surveyed said they’ve had to lay off workers, which is down 4 points from the fall survey. Elsewhere, businesses are staying open longer as only 10% report reducing hours. That is down significantly from the 17% of respondents that reduced hours last year.

What they’re saying:

Commenting on the survey results, Nationwide’s President of Business Insurance Russ Johnston stated, “Business owners are closely analyzing today’s economic uncertainty, but they’re also confident in their operations as they manage through the conditions to best meet demand and remain competitive.”

Johnson continued, “As business owners navigate the tight labor market to add staff, get back to traditional operating hours and explore cost-saving strategies, it is imperative that they review risk and ensure the business does not compromise on long-term protection.”

My thoughts:

There’s no doubt that the past few years have been challenging for small businesses. From shutdowns to supply chain issues and inflation to a (possible) recession, it’s really been one thing after another. Nevertheless, these businesses have shown how resilient they are through it all. Therefore, even if the expected recession does come, rest assured that many of America’s small businesses are ready to weather yet another economic storm.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

2 Qatar Airways Privilege Club Credit Cards

Cardless Launches Two Qatar Airways Co-Branded Credit Cards

The FinTech startup Cardless is partnering with Qatar Airways to offer two new co-branded cards to the American market. About the cards: Recently, Cardless introduced its two latest rewards credit cards: The Qatar Airways Privilege Club Signature Card and the Qatar Airways Privilege Club Infinite Card. Starting with the Signature card, it earns 4x Avios on Qatar Airways purchases plus 2x Avios on dining purchases, and 1x Avios on all...
Yendo logo and credit card

Vehicle-Secured Credit Card Company Yendo Raises $165 Million

A FinTech that offers the first-ever credit card secured by a customer's vehicle has announced its latest round of funding. About the round: This week, Yendo announced that it had raised $165 million. However, this includes $150 million in debt financing and $15 million in equity. The debt portion was led by i80 group, while the strategic investors that participated in the equity round were not disclosed. Yendo previously raised...
woman holding her hands to her temple thinking

Lessons From a First-Time Home Buyer: Worst Time to Buy a House? There Are Always Exceptions

If you've been thinking about buying a house, looking at the news lately has likely disheartened you. As CNN reports, a recent Gallup poll found that 76% of Americans believe it's a bad time to buy — with only 21% saying it's a good time. There are several reasons for that sentiment, with the top two being the combination of high interest rates and high home prices. So, are you...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...