Small Business Optimism in the Face of Challenges

Despite a turbulent economic landscape marked by inflation, supply chain disruptions, and rising labor costs, a majority of small business owners are optimistic about their businesses' prospects.

• 51% of business owners reported that their business is doing better compared to 2023.
• 84% are optimistic that 2025 will be better for business than 2024.

The 2024 Election: A Key Concern for Small Businesses

With the upcoming election, small business owners are closely following election news, eager to understand the potential impact of policies on their businesses.

• 81% of business owners are following election news closely, with 45% monitoring it daily.
• 40% believe that the next president's policies could improve their business.
• 39% are not confident that any helpful policies will be passed.

Economic Outlook: Inflation, Recession, and Growth

Small business owners are grappling with the ongoing impact of inflation, with two-fifths (43%) believing it will improve. They are also concerned about the potential for a recession in the next two years.

• 70% of respondents expressed concern about the U.S. entering a recession.
• 48% believe the economy will become stronger over the next 12 months.

AI: Embracing Technology for Efficiency and Growth

The majority of small business owners (74%) are optimistic about the role of artificial intelligence (AI) in their businesses, with many recognizing its potential for efficiency and growth.

• 28% say AI is helping their business become more efficient.
• 27% believe AI will create new business opportunities.
• 19% say AI is saving them money.

Hiring Challenges: Rising Costs and Finding Talent

Small businesses are facing challenges in hiring and retaining talent, driven by rising labor costs and the need to adapt to a changing workforce.

• 71% of business owners believe the cost of goods will increase over the next 12 months.
• 63% anticipate increases in labor costs.
• Small business owners are offering higher wages, remote work options, and professional development to attract and retain employees.

Challenges Faced by Small Businesses: Inflation, Costs, and Uncertainty

Small businesses are navigating a complex set of challenges, with inflation, rising operating costs, and economic uncertainty posing significant threats.

• The top threats reported by business owners are inflation (53%), rising operating costs (43%), and economic uncertainty (41%).
• Over half of respondents (51%) reacted to inflation by cutting non-essential spending.
• Many businesses have experienced cash shortfalls, leading some to dip into personal savings or reduce their own pay.

Stress Levels and Impact on Small Business Owners

The challenges faced by small businesses are taking a toll on their owners, leading to increased stress and impacting sleep, focus, and mental health.

• 61% of small business owners reported feeling stressed about the current state of their business.
• Stress is causing many business owners to get less sleep and struggle to focus.
• The average stressed small business owner loses seven hours of sleep per week.