A new nationwide survey conducted by Digital.com finds many small business owners facing the prospect of a recession and continued high inflation with dread.
In a June 17 poll of 1,000 small business owners with a workforce of 500 or fewer employees, 65% of respondents said it was “very likely” or “likely” they”™ll permanently close if inflation continues at its current rate. The survey also found 95% of small business owners “very” or “somewhat” concerned over the possibility of a recession.
As for ongoing challenges, 38% of small businesses facing closure planned to lay off employees to stay afloat, while 62% of businesses that began during the pandemic stated they were now in danger of closing.
The industries facing the biggest potential losses in a continued state of economic fraying include advertising and marketing (80%), business and finance (76%), construction and manufacturing (72%), education (69%), and food and hospitality (69%). In comparison, only 49% of businesses in both the personal care and services and retail industries said they were likely to close.
Furthermore, 40% of business owners said they took a pay cut in the past year to keep their business running, while 31% cut employees”™ salaries. Other tactics small business owners have already tried to ease the pain of inflation include raising prices for customers (37%), staff layoffs (32%) and changing products or services offered to cut costs (30%).
