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As the U.S. economy enters its final quarter of the year, uncertainty remains. While consumers and big businesses are showing resilience, Main Street continues to feel the pressure of inflation and policy changes.
result? These mixed signals keep many small business owners on the sidelines when it comes to hiring and investing. The latest CNBC|SurveyMonkey Small Business Survey captures this disparity and reveals how entrepreneurs are weighing risk in today’s unbalanced economy.
This quarter’s data shows significant generational disparities. While some small business owners remain hopeful, Gen X entrepreneurs are the most financially insecure. They are the group with the least confidence in both the stability of their own businesses and the outlook for the United States as a whole, reflecting the increasing pressure on Gen X leaders to maintain growth in an unpredictable economy.
The findings of this study point to two challenges. Established Gen X executives are most anxious about the present, while younger entrepreneurs are increasingly worried about the future. Gen Z and Millennial business owners are most concerned about a potential recession, even though they remain optimistic about long-term growth.
Today’s pressures are at the forefront for Gen These small business owners are focused on short-term economic threats, from rising costs to changing demand.
Gen Xers consistently show the least confidence in today’s economy and business environment.
39% of Gen Only one in three (35%) Gen Although still a minority of these groups, both Gen Z and Millennials (39%) and their boomer/silent counterparts (42%) are relatively optimistic.
For these entrepreneurs at the peak of their careers, the financial burden is ongoing and tangible. Inflation, labor costs and business stability weigh on their outlook, making them more cautious about next year.
That lack of confidence extends beyond their own businesses to the institutions that shape the economy. When asked about the Federal Reserve’s effectiveness in combating inflation, Gen X small business owners again stood out as the most skeptical group. Only 37% of these business owners are confident in the Fed’s ability to control inflation, trailing only Gen Z and Millennial (43%) and Boomer/Silent Generation (48%) small business owners who report being confident.
But at the same time, Gen Z and Millennial entrepreneurs are obsessed with: 73% expect a recession in the U.S., compared to 66% of Gen Xers and 58% of Boomers/Silents.
The data highlights how stress and financial insecurity for small businesses can take different forms across age groups. In other words, a bleak present for Generation X leaders and a frightening future for younger generations. The companies that run the majority of today’s small and medium-sized businesses are weathering economic conditions that are pessimistic. Recognizing the generational pressures of immediate anxiety and looming uncertainty is key to understanding the true state of Main Street as we head into the new year.
— Eric Johnson, SurveyMonkey CEO
