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BizReport : Ecommerce archives : April 01, 2019

Report: US SMB owners worry about another recession

While the US economy seems to be in good shape, at least according to the stock market, some small businesses aren't so sure. According to a new confidence index, a growing number of SMB owners are worried that a recession could be in the near future.

by Kristina Knight

Recent happenings like the longest government shutdown in US history, the on-going investigations into the 2016 election, and even policies regarding tariffs and trade have many small business owners worried that what seems like a good economy here in the US could be headed for another recession. That's a key takeaway from BizBuySell's new confidence index, which notes that about one-third (36%) of SMB owners believe the US could be headed for another recession in as little as the next three years. Nearly 40% say that a recession is the biggest risk to their business.

"Small business owners have generally done well during the last several years, but are keeping an eye on some macroeconomic and policy impacts.  While most were not affected by the recent government shutdown, of the 18% who said they were negatively affected, 40% of those still haven't recovered," said Bob House, President, href="">BizBuySell.

Of those business owners polled 40% report they have not recovered from the recent government shutdown and most (79%) say there is no change in their business since the government went back to work. Another dividing line: President Trump's so-called national emergency at the Southern border. Half (50%) of SMBs owned by Boomers side with the president's statements while about half (48%) of SMB owners younger than Boomers say there isn't a national emergency at the border.

"A third of owners believe a 25% tariff on Chinese imports would hurt their business.  Like the nation, small business owners are split on their support of President Trump's emergency declaration at our southern border, with older owners generally supporting the decision and younger owners disagreeing with it, and all owners split on whether stricter immigration policies will have a positive or negative impact on their business.  Also weighing on business owners minds is hiring within a talent shortage (17% of owners) and an economic slowdown within the next three years (36% of owners)."

More BizBuySell data can be accessed here

Tags: BizBuySell, small business owners, SMB tips, SMB trends, US recession

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