Small Biz Outlook For 2023 = Surprisingly Bright

Here's a sneak peek at our January poll results. 

We wanted to share the information as it was much more positive than many of the polls have been over the past six months, showing that many small business owners are trying to make a fresh start in 2023.  

Among more than 5,000 small business owners polled from New Year's Eve until 1/7/23, a strong majority (61%) said they expect 2023 to be a good year for their business. 

In fact, of that group, 28% said they think the year will be great for them, predicting their businesses will expand and thrive. 

The remaining 33% of that optimistic group said their outlook was good and that their businesses are powered up to grow in 2023. 

Mixed Expectations & Fears From 39%

While it's fantastic that 61% are optimistic about what 2023 will bring for their businesses, the rest -- 39% -- represent a significant sector of businesses with questions or concerns about 2023. 

Drilling down into the less uplifting statistics:

• 14% said they weren't really sure what to think at this point
• 13% noted they were uneasy about 2023, given recessionary trends
• 8% percent told us they're preparing for a rough ride, and 
• 3% are in such bad shape, they might close their businesses this year. 

That's due to many factors, including the cumulative, negative effects of inflation, labor issues, rent spikes, increasing interest rates, and what many small business owners feel is a looming recession. 

Recession Remains A Key Concern

While the majority of small business owners said they're optimistic about the near future, many are also worried a recession could occur, impeding their business growth.

In the poll, we asked, "Do you believe a recession is likely this year?"

More than half (56%) said, "Yes." And 31% of that group said they believe we're already in a recession. 

However, 32% said it's hard to predict. 

And 12% said they didn't think a recession would occur, at least not in 2023. Of that 12%, 1% added that a recession could come in 2024.

Stay Tuned For The Full Report & See The NYT Coverage

We're in the process of creating a wrap-up report examining the end of 2022 and where we're starting in 2023. We'll be posting it in the newsletter within the next few weeks, so please keep your eyes open for it. 

To see how rent and cash flow issues ended in December, you can find that information in Alignable's December Rent Report, released just before New Year's Eve. 

Insights from this report have been covered in many articles across N. America over the past week, including this very well-researched story in The New York Times, published on Friday, January 6th.

This late-December report reflects some of the struggles that small businesses had at the peak of their woes last month. 

Based on what we're seeing in the January poll, many SMB owners are trying to put those challenges behind them in 2023.

We'll be watching closely this year to see how much progress is made toward that goal, along with other strides toward their recoveries. 

While there has been some improvement recently, only 31% of all business owners polled have told us they've fully recovered financially, generating as much monthly income as they earned prior to COVID. 

That means we still have a long way to go and need to ramp up our support for local businesses across all industries in 2023.