Startups

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.

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.

Infographic: Small Business Outlook and Challenges for 2020

Infographic designed by Easel.ly.

Source

Tags

SCORE

SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. We have been doing this for over fifty years.

More Articles You May Like

Back to top button
Share this
Close
Send this to a friend