The latest Freedom Economy Index survey, a collaborative effort between PublicSquare and RedBalloon, sheds light on the current state of small businesses across America. Despite facing a year marked by inflation, aggressive interest rates, and a tight labor market, small business owners are demonstrating remarkable resilience. The survey, which polled 70,000 small firms, reveals a slight improvement in sentiment from November highs, yet a significant 70% of owners report their employees are 'falling behind financially' in today's economy.
Michael Seifert, CEO of PublicSquare, expressed optimism about the future, citing the steadfastness of these businesses amidst adversity. The data underscores the harsh realities of 2023, with 37% of small businesses forced to increase their debt to stay afloat, and only 10% managing to reduce theirs. The holiday season offered little relief, as 60% of respondents reported Christmas sales below expectations. However, Andrew Crapuchettes, CEO of RedBalloon, sees a 'glimmer of hope' for those who have endured these challenges, suggesting that survivors will emerge stronger.
Looking forward, the survey indicates a cautious approach among small business owners, with 80% postponing major capital purchases and nearly half reducing business travel. While concerns about a recession have diminished from their peak, over 90% still believe the country is on the 'wrong track.' In this uncertain environment, 65% of small firms plan to maintain their current staffing levels, neither hiring nor reducing their workforce.
This survey not only captures the resilience of America's small business community after a difficult year but also highlights their critical role in fostering economic stability. By focusing on cost control and debt management, these businesses are positioning themselves for a more stable 2024. Their perseverance is a testament to their importance to local economies and communities nationwide. For more information on the survey, visit https://www.publicsquare.com and https://www.redballoon.work.
