WASHINGTON – The National Small Business Association has released its annual Small Business Economic Report, which shows a small business community facing increased costs, economic insecurity and a hesitancy to embark on any significant growth.
The report, which NSBA has been conducting for 20 years, takes a comprehensive look at growth, hiring, financing, policy and other key indicators.
“More businesses today are not seeking external financing than at any point since we’ve been doing the survey,” said Todd McCracken, NSBA president and CEO. “This underscores slower anticipated growth rates and a generally stagnant small business economy.”
Key findings include:
- More than half of small business owners said they believe that the economy is worse today than it was a year ago.
- The number of small businesses that reported an increase in revenues over the past year was at its lowest point in more than a decade.
- Just 18 percent of small business owners reported they hired in the past year, while 21 percent said they reduced their workforce, resulting in a net deficit.
- The majority of small businesses said they have incurred increased costs in the past year, and among those, 74 percent said those cost increases are due to tariffs.
- Nearly half of small businesses said they believe the current trade and tariff policy is on the wrong track.
“Economic uncertainty remains the top concern for America’s small business owners, with U.S. political instability a close second,” said Bill Belknap, NSBA chair and president and CEO of AEONRG LLC in Downingtown, Pa. “These are issues our political leaders could easily impact for the good – if they wanted to.”
The full report is available HERE.