Small Business Owners Fear a Recession but Aren’t Backing Down, Surveys Says
Two different polls capture entrepreneurs’ views of the economy as a glass less than half full, but brimming over with personal satisfaction running their own companies.
What kind of person fears the direction the economy is headed in, yet remains resolutely upbeat about their business all the same? That would be the average American entrepreneur. In recent polls, small company owners said they were worried about a potential recession, yet overwhelmingly declared themselves happy leading their small companies.
Those contrasting sentiments were recorded in separate surveys conducted in April by design and printing provider Vistaprint, and law advisory and services company LegalShield. The respective results showed entrepreneurs view the current economic environment as a glass even less than half full, while elsewhere reporting their own professional cup of contentment as filled to the brim. Reflecting that, 94 percent of LegalShield poll respondents said they were “worried about a potential recession,” while 81 percent told Vistaprint questioners they still remained somewhat or very happy being small business owners.
That satisfaction in running a company — despite the rising worries that the 0.3 percent economic contraction in the first quarter of the year may get worse — is something Vistaprint executive vice president of global marketing, Emily Whittaker, described as a trademark of the entrepreneur’s character.
“Small business owners are inherently positive people and they find fulfillment by charting their own course,” she said.
They need extra positivity to remain upbeat these days — especially as President Donald Trump’s sweeping tariffs risk boosting costs and creating uncertainty that complicates business planning.
The LegalShield poll of 255 small company owners and managers found 85 percent feared negative impacts of import duties on their companies, and 65 percent expected supply chain disruptions.
Nearly 55 percent said they were concerned about potential legal troubles arising from Trump’s tariff policies. Those worries were linked to anticipated renegotiation of contracts with suppliers in response to import disruptions, adjusting staff levels and schedules to lower demand, and navigating legal complexities of complying with the levies.
“Small business owners are bracing for legal and operational challenges as economic uncertainty looms,” said Matt Layton, LegalShield’s senior vice president of consumer analytics. “Billing disputes and collection inquiries are leading indicators of future bankruptcy requests from SMB owners. Consumers feel the financial pain first, then they pull back on spending which can lead to negative impacts on businesses.”
That almost certainly also applies to entrepreneurs who answered the Vistaprint poll. But if so, they aren’t letting those complications get them down.
In addition to their general contentment, 53 percent of the 450 participating small business owners said they were somewhat or much happier than when they first started their companies. Around 76 percent said the same when comparing their satisfaction levels to when they worked for someone else.
Owners of businesses launched six to 10 years ago reported the highest level of contentment at 92 percent, with founders of companies less than three years old the least happy — but at a still lofty 84 percent. The main reasons for that satisfaction were entrepreneurs’ freedom to set their own agendas; their pursuit of a passion through their business; interaction with customers and the community; and controlling or improving their own income results.
What were biggest recurring factors in shaping respondents’ happiness? About a third said they came from everyday internal company developments that push their business forward. In terms of generational cohort, Gen Z entrepreneurs most frequently described themselves as “very happy” at 54 percent, followed by Millennials, Gen Xers, and Boomers tied at 47 percent.
Elsewhere, Vistaprint found small business owner contentment rising in step with company staff levels owners employed. Geographically, the largest percentage of “very happy” bosses were located in the Midwest, followed by those in the South, West, and Northeast.
This article was written by Bruce Crumley from Inc. and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
