SMEs expect a recession, but are optimistic about their outlook
Like many strategists and economists, most U.S. SME leaders are expecting a recession this yearBut many people are more optimistic about their company’s prospects than about the national or global economy, according to JPMorgan Chase’s 2023 Annual Business Leadership Outlook Survey.
Inflation is a top concern for almost all (91%) medium-sized businesses and is listed by 45% of small businesses as a top challenge, up from 20% a year ago. As a result, 83% of medium-sized businesses said they have passed on at least some of the added costs to consumers and buyers, and 68% of small businesses have raised prices of some or all of their products and services. .
About 72% of small business leaders said they were optimistic about their prospects in 2023, up from 67% in JPMorgan Chase’s mid-year survey. For medium enterprises, 66% expressed optimism for the coming year.
With that bright outlook for their own businesses, at least half of SMEs anticipate hiring this year. About 51% of small business leaders want to hire full-time employees, and 50% of midsize business leaders want to increase headcount.
Only 8% of medium enterprises expressed optimism about the global economy and 22% were optimistic about the national economy. In contrast, 45% of small businesses with little exposure to domestic and international markets are optimistic about the global economy and 49% express optimism about the national economy.
JPMorgan surveyed more than 1,000 businesses with annual revenue between $100,000 and $20 million in its small business survey conducted in November. In the mid-size business survey, 791 respondents at Companies with $20 million to $500 million in annual sales completed an online survey between November 29 and December 13, 2022.
How important SME fares can be to the economy as a whole. In ADP December employment report, All job growth comes from small and medium-sized organizations. Large establishments lost 151 thousand jobs for the month, while small establishments added 195 thousand and medium-sized establishments added 191 thousand.
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