As we enter 2023, many small business owners are feeling cautiously optimistic about the year ahead. While the past two years have been challenging due to the global pandemic, inflation, and supply chain issues, small businesses have proven to be resilient and adaptable. However, the coming year will not be without its challenges.
One of the biggest concerns for small business owners is the possibility of a recession. While it is uncertain whether or not a recession will occur, small businesses are already dealing with several economic obstacles. According to Dave Charest, Director of Small Business Success at Constant Contact, “even if a recession does develop, our 2022 Small Business Now report shows that 90% are confident that they will still be in business a year from now. We also often see lots of small businesses get started during recessions.” However, some sectors, such as convenience, lifestyle, and entertainment businesses, may be impacted more heavily than others.
The labor market is also a concern for small businesses in 2023. According to a recent survey, about 40% of small businesses are struggling to attract new employees, and another 21% are concerned about retaining current staff. As a result, small businesses will have to get creative in terms of incentives and benefits to keep their employees engaged and invested in the business.
Inflation is another major concern for small business owners, as higher prices could potentially drive away customers. However, consumers are very willing to support the businesses in their communities as long as they provide value and cultivate a relationship with their customers.
Despite these challenges, small business owners remain resolute and optimistic heading into 2023. They are focused on investing in new technology, boosting head count, and promoting their businesses. Additionally, many small business owners are betting on themselves, taking control of their own destinies and refusing to be at the mercy of large corporations.
In terms of finance, small businesses will be even more focused on managing costs in 2023. Many small businesses are leveraging fintech offerings and will be prone to scrutinizing whether those they have are exactly what they need to run their business. Small business owners will also look at consolidating their services, which will increase demand for cohesive financial platforms that help small businesses manage their money end to end.
Finally, cybersecurity remains a major concern for small businesses in 2023. Attacks on small businesses will increase, and organizations increasingly want to work with vendors that have mature security and compliance programs. As such, it’s important for small businesses to implement a BYOD (Bring Your Own Device) policy to ensure that any device that could potentially be connected to their company is properly secured.
Despite these challenges, small business owners are tough and resilient, and they will get through whatever 2023 has to throw at them. They will continue to focus on their strengths – their connection to their communities and the great experiences they can provide customers – and lean into the tools and resources available to help them grow.
