'Entrepreneurs' Survey: Business Owners on Inflation, Economy, Election

The last four years have been marked by a unique set of challenging circumstances for small business owners – a once-in-a-generation pandemic, supply chain headaches, high (though decreases somewhat) inflation and rising labor costs, among other obstacles.

On the brink of consequences 2024 presidential election, entrepreneur I wanted to know how small business owners feel about topics ranging from the economy, employment, to stress AND sleeping habits. So, in partnership with Speaker researchwe surveyed 500 small business owners to get some answers. We'll dive into the full results below, but first, the good news: Half (51%) of small business owners report that their business is doing better compared to 2023, and 84% are optimistic that 2025 will be better for business than 2024.

What are small business owners thinking about right now?

Overall, small business owners across the country feel optimistic about the prospects for their businesses – with the most optimistic business owners located in the Northeast (56%) and Midwest (54%).

Two in five (43%) small business owners believe inflation it will improve. Millennial Small business owners are more optimistic, with 49% reporting they believe it will improve.

Nearly half (48%) of respondents believe the economy will get stronger over the next 12 months.

Men were more likely to believe the economy would get “much stronger” in the next 12 months (21% vs. 13%).
Democrats were much more likely to believe that, with 63% thinking it would get stronger, compared to 49% of Republicans and 39% of independents.

How business owners feel about AI

A majority (74%) of small business owners report feeling optimistic artificial intelligencewith 28% saying that AI is helping their business more efficient27% say AI will create new business opportunities and 19% say AI is saving them money.

46% of small business owners report that AI is not relevant to their business.
84% of millennial business owners see AI as helping their business in some way.
60% of small business owners say changes in artificial intelligence, social media and search algorithms have not significantly impacted their businesses.

What small business owners think about hiring

Although roughly half (47%) of respondents are not currently recruiting new employees, small business owners who are working to earn young talent they are doing this by increasing wages (28%), providing the opportunity for it work remotely (19%) and offering the ability to work fewer hours (16%).

About 20% of millennial business owners are providing additional professional development compared to Gen X (12%) and baby boomers (3%).

Most small business owners (71%) believe that cost of goods will increase over the next 12 months, while 63% believe labor costs will increase.

What challenges do small business owners face?

Of those businesses that report declining performance compared to last year, the average business owner believes they can last 11.9 months.

20% believe that they can only maintain the current state of business for less than three months.
40% believe they will last less than a year.

The main threats to small businesses reported by their owners are inflation (53%), rising costs of operations (43%) – including housing, taxes, etc. – and economic uncertainty (41%).

Over half of respondents (51%) said they responded to inflation over the past year by cutting back on non-essential spending.

38% say they have increased prices.
26% say they have adapted to lower profitability.
Male owners (17%) were twice as likely as female owners (7%) to respond to inflation by renegotiating with suppliers.
When it comes to experiencing a lack of cash, it seems to go one way or the other – 47% had experienced a lack of cash this year, while the same number (47%) reported that it had not been a problem so far this year .
Homeowners in the Northeast (44%) were least likely to experience cash shortages.

Of those surveyed who experienced a lack of cash, almost half (46%) dug into their personal savings, while 30% said they did not pay themselves. Others asked friends, family or investors for money (23%) and took out a line of credit (17%). Almost twice as many male owners (14%) have received bank loans than female owners (8%).

Most respondents (70%) say they are worried that the US will enter a recession in the next two years. Concern about the impending recession among business owners increases with age when looking at millennials (27%), Gen X (30%) and baby boomers (38%).

How stress affects small business owners

A whopping 61% of small business owners report feeling stressed about the current state of their small business.

Male owners were slightly less stressed overall (57%) versus 64% of female owners.
Democrats were least stressed (52%) versus Republicans (67%) and independents (61%).
Newer businesses were more likely to show stress with 72% of businesses under a year reporting this versus 64% of 1-5 year old businesses, 58% of 6-10 year olds and 55% of 10+ year olds.

Of those surveyed who report feeling stressed, 56% say they are getting stressed less sleep because of it, while 38% say they are struggling to focus.

Sleep affected younger generations the most, with 61% of millennials, 52% of Gen Xers and 50% of boomers reporting less sleep.
Millennials were more likely to report a loss of focus (43%) and say stress causes them to spend more money than they can afford (41%).
General Mr were more likely to cite stress as a reason they are experiencing mental health problems (34%).

The average stressed small business owner loses seven hours of sleep per week.

20% of stressed small business owners say they lose three to four hours of sleep per week.
Millennial owners lose more sleep (7.5 hours).
Stressed male owners lose slightly more sleep each week than stressed female owners (7.3 hours vs. 6.9).

How small business owners feel about the election

Most small business owners (81%) follow election news closely, with 45% reporting daily monitoring.

More baby boomers (95%) than millennials and Gen X (80%) are following the election closely.

Two in five (40%) respondents believe that the policies of the next president of the United States can improve their business and expect them to do so, while 39% do not believe that any useful policies will be adopted.

Likewise, Democrats (15%) and Republicans (15%) believe government policy cannot materially improve their businesses, while Independents were slightly more pessimistic at 29%.

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