[ad_1]
Over the past two years, small businesses have weathered the rising costs of a global pandemic, supply chain crises, labor shortages, and inflation. A recent Nationwide study by Agency Forward found few companies will see a bailout in the near future, and with a recession expected in the coming months, they are taking precautionary measures to protect their businesses. It became clear.
The current economic climate is hitting small businesses in America
Only 27% of small business owners say the current state of business in the US is good, and just over a third (36%) feel the same about their region or city. He predicts that 70% of small businesses will be in recession within the next six months, and the outlook for small businesses is even grimer, with 37% of small businesses feeling prepared. It’s just
The survey also sheds light on how business owners are feeling the effects of recent economic instability.
- Six in 10 small business owners say inflation and rising costs are having a negative impact.
- Thirty-five percent said they were negatively impacted by rate hikes.
- Nearly 4 in 10 (39%) say their business revenue has decreased in the past six months, with most of the decline reaching 30%.
Small business owners are looking for creative ways to protect themselves from economic instability
Nearly 6 in 10 (58%) business owners have considered areas for cost savings in the past 6 months. More drastic measures include his 38% of business owners using personal savings to support their businesses and 22% canceling or postponing large business investments. Perhaps most alarming are job cuts that could affect the job market. Some owners have already stopped or are planning to suspend hiring (38%) or have furloughed/shortened employees (23%) to prepare for the tough times ahead. I’m here. Only 14% of them plan to hire new employees. Additionally, about 4 in 10 say they have no plans to offer their employees a raise (42%) or bonus (41%) this year.
Eric Coleman, Senior Vice President, Small Business Insurance, Nationwide, said: “When recession predictions come true, getting back on track is not easy. Worse, when owners end up putting their business at risk in the long run to cut costs.”
A policy may seem like a quick save, but policy changes can have long-term consequences
Small business owners are reconsidering insurance policies as a way to manage costs ahead of the expected economic downturn, with 84% saying they have reviewed or plan to review their insurance policies soon. I’m here. Of those business owners looking to cut operating costs, 51% of them said they would likely reduce their current insurance coverage or limits to cut spending in the event of a recession. This is likely because 52% expect premiums to increase in the next six months.
“With so many small business owners considering changing insurance, only 29% of owners contact an agency, especially as inflation and supply chain issues continue to push up repair costs and schedules. Coleman: “During these conversations, business owners are asked how a lack of coverage or appropriate restrictions could affect their business in the future. Making decisions and updating without speaking to an agent can defeat our cost-cutting efforts.”
Research method:
Nationwide partnered with Edelman Data & Intelligence to conduct a 15-minute survey of 401 small business owners (single or joint owners of companies with 1-50 employees and less than $10 million in annual revenue). A nationwide online survey was conducted. This survey he conducted from September 6 to 19, 2022. As a good member of the Insight Association and ESOMAR Edelman Data & Intelligence, we conduct all research and comply with all markets in accordance with local, national and international law. Research standards and guidelines.
[ad_2]
Source link
