But a recession hasn't happened yet and there's some positive economic data
- The vast majority of small business owners are expecting a recession, a survey finds.
- Some 80% of small business owners say the current economy is a major or existential threat to their existence.
- Despite the fears of a recession, recent economic data has shown growth in most states.
Economic fears are running high among small businesses, which employ tens of millions of people and support local economies.
Some 79% of small business owners are concerned about a U.S. recessionin the next 12 months and 80% say the current economy is presentingan existential or major threat to their existence, according to a survey by Small Business For America's Future, which polled 862 small business owners from April 18 to May 2.
The top concerns with the current economy are "inability to grow or expand business," with 48% of respondents, followed by "supply chain disruptions and increased supplier costs"(43%) and "rising costs of imported materials or products due to tariffs" (42%).
Small businesses are often praised as the backbone of the American economy: There were nearly 33.2 million small businesses employing nearly 62 million people in 2023, according to the Small Business Administration.
The survey adds to growing evidence of fearsamong small businesses, following economic uncertainty,political turmoil and the trade war.
'Hasn't happened yet'
Still, Federal Reserve state-level economic data has showngrowth in 43 states and decreases in only three as of April, instead ofthe negative growth in at least half that would be considered an indicator of recession-like conditions, said Jack Kleinhenz, chief economist of industry group National Retail Federation, in a statement.
The possibility of a U.S. recession in the near future has increased due to rising trade tensions and other economic factors, but it hasnt happened yet, Kleinhenz said. With so much uncertainty surrounding the economy in the past few months, Im not sure anyone can predict the storm path of tariffs and their likely impact."
And some American businesses are seeing positives from the tariffs.
Electric Mirror, a manufacturer of lighted mirrors, has decided to build a factory in the U.S. instead of moving manufacturing overseasbecause of tariffs, the company's CEO Jim Mischel wrotein anop-ed in The Washington Times.
These policies allow Electric Mirror to continue manufacturing in America, where we began and want to stay, he wrote.
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Posted: 2025-05-09 15:02:23
