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Home Industry Trends Economic Conditions: Recession Are We Really Entering A Recession? Here’s What Small Business Owners Say.
What can a survey tell you? First, 81% of small business owners are anticipating a recession in 2022. That stat comes from a quarterly survey conducted by CNBC, First in Business Worldwide, and Momentive/SurveyMonkey.
After questioning more than 2,000 small business owners, the same survey, which focuses on feedback about jobs, taxes, and other economic topics, also found:
Do small business owners think a recession is likely? A recent survey says yes — and answers more questions, too. Read the article here.
And, in terms of inflation, just 27% of small businesses feel confident that the Federal Reserve can actually control it.
In terms of a recession, are SMBs right to be concerned? That depends on who you listen to. During the past few weeks, economics experts themselves have had difficulty making up their minds, waffling between “yes,” “no,” and “maybe.”
If it’s hard for economists to predict when or if a recession will occur and how severe one could be, it’s even tougher when you’re on the front lines as a small business owner or consumer. The most recent recession — from 2007-2009 — resulted from a mix of factors, with the housing and real estate markets as the main trigger. But according to the Economist, this time round, things are vastly different. “A recession would not look like it did after the last financial crisis. The system is just not levered like it was back then,” says Jay Bryson of Wells Fargo. The biggest differences?
So is there a reason to prepare? Yes — but within reason. Taking key steps to make your business more recession-proof does make sense in both the short-term and long-, regardless of whether a recession manifests. Here’s what you can do:
Sometimes, however, applying those factors requires creative thinking. During the recession of 2008, non-essential subscription services, like Netflix, managed to grow — impressively, too. Home improvement stores did well, too, as consumers opted to update their existing home rather than sell during the housing crises. During Covid shutdowns, businesses, like Zoom, shifted their business models to better respond to a market they had never realized before. Even at Lendio, we quickly adopted a new business model during shutdowns and shifted our energy to PPP loans, which was what small businesses – our customers – needed to get through a challenging time.
*The information provided in this post does not, and is not intended to, constitute business, legal, tax, or accounting advice and is provided for general informational purposes only. Readers should contact their attorney, business advisor, or tax advisor to obtain advice on any particular matter.
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