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:
- 43% of the US workforce will be freelancers by 2020 so take advantage of the growing freelancer pool.
- 50% of workers will be working remotely so offer perks to attract and keep employees, such as remote work.
Challenge #3: Cyberattacks
43% of cyberattacks target small businesses.
How to prepare:
- Watch SCORE’s webinar “What Small Businesses Need to Know About Cybersecurity”
- Read our “The Small Business Guide to Cybersecurity” to develop a plan
Challenge #4: Natural disasters
40 to 60% of small businesses never reopen their doors after a disaster.
How to prepare:
- Browse through our Small Business Disaster Preparedness Resources
Work with a SCORE mentor to help you prepare your small business for the new decade.
Infographic designed by Easel.ly.
