(The Center Square) – The vast majority of small business owners fear a recession in the coming year, according to a new poll.
The Small Business and Entrepreneurship Council released the survey, which found 88% of small business owners are “concerned a recession is around the corner.”
“There’s little breathing room for our nation’s small business owners and their employees,” SBE Council president and CEO Karen Kerrigan said. “They’ve gone from one set of economic challenges to the next over the past couple of years, and now they are vastly cutting back on spending and investment, which will have a harmful effect across the economy.”
Soaring inflation has hit small businesses hard as federal data showed the producer price index rose 10.8% and consumer prices have risen at the fastest rate in decades. As Rhe Center Square previously reported, an Alignable poll in May found that 51% of small businesses fear inflation could “force them to close their businesses within the next six months.”
The SBE Council survey found only 7% are “unconcerned” about inflation, according to the survey.
Overall, the poll found that 33% say the current economic conditions are “fair,” while 44% call the conditions “poor.” The poll also found that “62% of small business owners report they are cutting back on spending due to higher business costs.”
That cutback on costs could have a ripple effect throughout the economy as other businesses suffer from the loss of demand.
“The spending actions and investment decisions of millions of small business owners has a major impact on the health of the economy,” Kerrigan said. “The collective pull back on spending and investment will be felt in local economies and at the national level alike.”
The survey queried 408 small businesses owners from June 7 to June 10.