Small Business Outlook and Challenges for 2020

Infographic: Small Business Outlook and Challenges for 2020

The economy helped many small businesses thrive in 2019, but 2020 could be a whole different story. SCORE’s latest infographic highlights the outlook and challenges for small businesses in 2020. You will find hot links below the infographic. 

Infographic: Small Business Outlook and Challenges for 2020

 

The US economy is strong, but slowing:

  • GDP growth will drop:
    • 2.2% in 2019
    • 2.0% in 2020
    • 1.9% in 2021
  • Unemployment will increase:
    • 3.6% in 2019
    • 3.5% in 2020
    • 3.6% in 2021
  • Inflation will increase:
    • 1.6% in 2019
    • 1.9% in 2020
    • 2.0% in 2021
  • Manufacturing will decrease:
    • 2.2% in 2019
    • 2.0% in 2020
    • 1.9% in 2021

Most small business owners feel only “somewhat prepared” for the challenges ahead.

  • 24% of business owners feel very prepared.
  • 62% feel somewhat prepared.
  • 13% feel not very prepared.
  • 1% feel not at all prepared.

Challenge #1: Economic downturn

  • 11% of business owners feel an economic downtown is extremely likely.
  • 22% feel it is very likely.
  • 34% feel it is somewhat likely.
  • 27% feel it is not very likely
  • 6% feel it is not at all likely.

How to prepare:

  • 75% rate their company’s cash flow in 2019 as “good” or “very good” so apply for financing while your numbers are strong.

Challenge #2: Tight labor market

Most companies cannot fill open positions.

How to prepare:

Challenge #3: Cyberattacks

43% of cyberattacks target small businesses.

How to prepare:

Challenge #4: Natural disasters

40 to 60% of small businesses never reopen their doors after a disaster.

How to prepare:

Work with a SCORE mentor to help you prepare your small business for the new decade.

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