Survey Finds Majority of Small Businesses Feel Ready for Recession
Thanks to an encouraging jobs report released late last week, it seems fears of an impending recession have been calmed for the time being. Nevertheless there will surely come a day when the United States’ record-breaking expansion period comes to an end. Luckily, according to a recent survey, a majority of small business owners say they are prepared for when the next recession hits.
A study by small business lender Kabbage found that 80% of small business owners surveyed said they felt confident in their ability to survive a potential economic downturn. That’s because a number of entrepreneurs say they’re currently taking steps to increase their revenue and reduce their costs. For example one-third report growing their customer base and expanding their sales, while 21% are introducing new products and services to expand. Similarly 13% say they’re partnering with other business to increase their reach. In terms of cost-cutting, 8% of respondents are currently looking for ways to reduce operational expenses in order to build up savings. Additionally, in anticipation of a recession, 8% say they are delaying expansion and 7% are postponing hiring plans.
In a blog post revealing the study’s findings, Kabbage Chief Revenue Officer Laura Goldberg said of the results, “The grit and resilience of small business owners are admirable. Despite the growing fears of economists and Wall Street, entrepreneurs are ready to rise to the challenge. She continued, “The data demonstrates how every small business is unique and how market shifts impact them individually. The constant among them is their confidence to build their business and pursue their passion despite any hurdle.”
On top of the raw results, Kabbage also shared some quotes from entrepreneurs who had previously endured recessions. Among them was a medical services provider from New Jersey who said, “My organization has sustained over 30 years of economic downturns, severe storms, and just about every other obstacle. Of course, economic issues affect us, but we continually reinvent the way we manage the business to do whatever it takes to sustain.” Meanwhile a retailer in California was looking on the bright side, noting, “Our industry was affected by the 2008 meltdown, and we run our business from that experience. If a recession were to happen, we would view it as an opportunity to gain a bigger portion of our industry.”
Even if a recession may not be around the corner, it’s always a wise idea for small business owners to consider how they’ll react to a turn in the economy. Moreover taking steps now to prepare for such a slowdown can also be beneficial, including brainstorming ways to cut costs if needed. With that mind, when the next recession does hit, hopefully business owners will be as well-off as they predict.