Small Business Owners are concerned about the future… Here’s what you can do.
The outlook of small business owners (SBO’s) differs based on location, industry, support, and many other factors. SBO’s are concerned about a great many things, but now it seems the #1 concern is… you guessed it, the economy.
CNBC’s Small Business Surveys of over 2,200 small businesses convey current sentiments of small business owners.
From this collection of surveys, 45% of owners are confident about current business and market conditions and more than 40% project revenue increases in the coming year. However, recent changes in the banking system and money markets leave many uncertain. 91% of those surveyed said it was their principal concern while planning and conducting business.
The FED has recently increased interest rates, with SBA (Small Business Administration) prime rates now at 8.25%. This is a huge increase from lower rates below 3% in 2020-2021. Naturally, this makes securing funding from banking institutions quite difficult and risky for some small businesses. The banking insecurity goes even further. With the recent closing of regional banks such as Silicon Valley Bank, Signature Bank and First Republic, many SBO’s are thinking more intently about their options for securing funding.
Find out more from CNBC here
Here’s what you can do:
To combat these changes some business owners are maximizing on already existing lines of credit, in order to avoid undergoing the approval process again, and receiving the higher rates. Some are also reevaluating growth opportunities previously planned, as those may require even more means of funding, with the possibility of failing to meet future payments.
The markets are always in flux, so do not be discouraged, but be determined. These times only call for resourcefulness and your business is worth fighting for!
The Alliance to Save the American Dream is a non-profit organization dedicated to three core goals.
1. Develop an Ideas Factory to give small businesses and industries a centralized place to share innovative ideas that must be considered.
2. Build a unique Resources portal for small businesses to go to for answers or resources that address a wide range of issues or challenges.
3. Offer a new networking opportunity for small business owners to connect while also giving them a platform to share their own personal stories. For more information, visit savetheamericandream.com.
