Americans confidence in government decisions is not absolute despite a relatively good economy over the past few years. With the recent shutdown and rising interest rates, the health of the economy is coming under scrutiny by small business owners.
During the most recent government shutdown, Nav conducted a survey of 120 small business owners to get their opinions on the possibility of a looming recession. Here are the results.
Nav’s Small Business Recession Survey Data
About 70.3% of those surveyed are certain that the country is headed for recession with 48% thinking a recession will come within 6 to 12 months. Only 19% were sure the recession will hit in 2020 while 17% were unsure when.
The respondents were asked why they believe there will be a recession. Of those surveyed, 25% pointed to the government while 16% said it was due to a slowdown in their small business. The U.S. Trade policies were cited by 14% and 22% gave other reasons which included the actions of elected leaders.
When asked if business owners were preparing for a recession, 38% said that they were cutting costs, while 22% stated that they are looking for financing sources. Only 19% responded that they are not doing anything to prepare with an additional 2% reducing staff. The small business industry is one of the economic indicators as to the true health of the economy. While a recession is not imminent, the fears will remain and taking caution is needed.