As the U.S. economy continues to show a downward trend, small business owners are concerned about the financial ramifications. These SMB owners share the steps they’re taking to prepare for a possible recession
With the latest news that GDP fell 0.9% in the second quarter, recession fears have been fueled by business owners and consumers alike. UpCity has announced the results of a survey that reviews plans from SMB owners to share how they’re preparing for the unknown.
The Preparing for Recession Survey gathers insight from 600 small business owners throughout the United States to take a deeper look at small business finances, models, and sizes, and how this affects planning and ability to weather a potential recession.
Read More: Amazon Sellers Can Now Automate Product Review Requests Using Hinge Axis
Statistical highlights include:
- 47% of B2B SMBs are somewhat worried about a recession, compared to 51% of B2C SMBs that are highly concerned.
- 54% of businesses that plan to downsize their team are going to outsource some of their tasks to third-party agencies.
- 34% of small businesses overall plan to explore local small business grants as their preferred disaster relief options.
- 37% of businesses with annual revenue of less than $500,000 are considering business credit cards. In comparison, 35% of respondents with $500,000-$2M in annual revenue are leaning toward invoice financing or factoring.
Heidi Sullivan, SVP of Product & Marketing at UpCity, says that because many people are still recovering from the pandemic recession, it’s no wonder so many survey respondents report keeping their guard up.
“We learned a lot after 2020, and we still are. But the truth is you can never be too prepared,” Sullivan said. “We don’t want to fear-monger but also understand concerns about the coming recession are valid as trends look like they’re heading to some level of economic instability.”
Read More: SalesTechStar Interview With Srikrishnan Ganesan, Co-founder and CEO of Rocketlane
“While it’s tough, business owners must shake off the shock of the pandemic that has built up since 2020,” Sullivan continued. “We know what we need to do, which is lay a solid financial and operational foundation to weather the coming potential challenges.”
UpCity is a resource that helps connect businesses to service providers they can trust. With more than 70,000 listed providers—from marketing agencies to accounting firms to HR consultants to IT specialists, and many more—2 million businesses (and counting) have visited UpCity to research and identify the best partner for their needs.
