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, indicates a slight improvement in sentiment from November highs, yet a significant 70% of owners report their employees are 'falling behind financially.'
Michael Seifert, CEO of PublicSquare, expressed optimism about the future, citing the steadfastness of these businesses as a reason for hope. The data, however, reveals the harsh realities of 2023, with 37% of small businesses taking on more debt to survive, and only 10% managing to reduce their debt. The holiday season offered little relief, with 60% of businesses reporting sales below expectations.
Andrew Crapuchettes, CEO of RedBalloon, pointed to a 'glimmer of hope' for those businesses that have endured the year's challenges, suggesting that their survival could lead to greater strength in the future. Looking ahead, the survey found that 80% of small businesses are postponing major capital purchases, and nearly half are cutting back on business travel, signaling a cautious approach to spending in 2024.
While fears of a recession have somewhat diminished, over 90% of respondents still believe the country is on the 'wrong track.' In this climate of uncertainty, 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 but also underscores their critical role in fostering economic stability and supporting local communities. For more information on the survey, visit https://www.publicsquare.com and https://www.redballoon.work.
