Record number of small businesses fear for their future

• A record share of small-business owners have no confidence in their financial future, following economic uncertainty, political gridlock and confusing policies such as tariffs.
• Close to half of small businesses say they are having difficulty getting loans.
• Despite widespread pessimism, most small businesses say they are currently growing or expect to grow in the coming year.

Small businesses may be more worried now than in recent memory.

Some 41% of small-business owner say they aren't confident in the financial future of their business, the highest level on record across 17 years of polling, according to a survey by the National Small Business Association (NSBA), which polled 650 small-business owners online from April 7 through April 30.

NSBA defines small businesses as having 500 or fewer employees, but the average small business has much fewer than that.

Small businesses are often praised as the backbone of the American economy: There were nearly 33.2 million small businesses employing nearly 62 million people in 2023, according to the Small Business Administration.

The survey showed a range of anxiety among small businesses, including on tariffs, politics, job cuts and a likely economic recession. Other surveys have also shown that consumers are spending less because of economic fears.

"This survey shows a small-business community in a more pessimistic state," said Todd McCracken, NSBA president and CEO, in a statement. "Economic security is the top challenge — at a higher rate than it has been for years — and the vast majority of small-business owners expect a flat economy or even a recession in the coming year."

And some 40% of small-business owners also said they were unable to get the financing they need through loans or other forms of credit.

"Which should be a wake-up call given the direct correlation that exists between capital availability and job growth," McCracken said.

Despite the economic worries, most small businesses said they are growing or expect to grow in the next year

"While the small-business overall outlook isn’t great, it isn’t all doom-and-gloom," McCracken said. "Most small businesses still report they are already growing or anticipate growth in the coming year."