Part 4―Our Findings and the Future of Business
Overall, small business owners feel more positive about both the pandemic’s impact on their companies and the future of their work. Compared to last year, a significantly higher proportion of respondents said that the pandemic has had a positive impact on their business.
Preparedness for the Future of Small Business
Despite all they’ve gone through, small business decision makers still feel very prepared to handle key workplace scenarios moving forward.
The workplace scenarios in which survey respondents reported the greatest improvement were:
- Employees changing residency and tax situation—up 7% from our 2021 survey
- Maintaining information security—up 4% from our 2021 survey
- Maintaining high levels of employee productivity—up 4% from our 2021 survey
It’s also important to note that more than half (55%) of small business decision makers say that meeting with clients virtually has helped revenue, a 12-point increase from last year.
Concerns About the Future
This year’s results point to a trend in the American workforce at large—The Great Resignation. The majority of survey respondents expressed concern over the possibility of employees quitting. In fact, almost two-thirds of small business decision makers were concerned about employees voluntarily leaving their jobs. Financial services companies were especially concerned.
In order to navigate this workplace challenge:
- 46% planned to train current talent to handle new problems
- 40% planned to use research and development to improve products and services and stay ahead of trends
- 36% planned to purchase software and services to organize and optimize processes
Other concerns about the future were wide-ranging. While “maintaining high levels of productivity” has declined in concern, it is still the primary concern among small business decision makers, followed by retaining current talent. Effective communication has increased as a concern.
Having survived the pandemic, small businesses are now facing the prospect of a looming recession. Experts are warning that the U.S. economy is likely to shrink, with economists at the country’s largest bank raising their expected probability of a recession in the next 12 months to an “uncomfortably high” level.
Even so, our survey found that small businesses have largely adapted to conditions brought on by the pandemic. And despite the emergence of new challenges, such as retaining talent and a possible economic downturn, SMBs told us that they’re feeling well-prepared to meet the challenge.
Learn More
Read the full interactive study on our paid post with The New York Times at How Small Businesses Have Handled Another Unprecedented Year.
