U.S. small businesses, vital to GDP and employment, face dire conditions with recession-level optimism.

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The U.S. is home to approximately 33.2 million small businesses, representing 99.9% of all firms and contributing about 43.5% to the GDP. They employ around 61.7 million people, accounting for 46% of the private sector workforce.

The NFIB Small Business Optimism Index has plummeted to 88.5, marking the lowest level since December 2012. This decline reflects the 27th consecutive month below the 50-year average of 98.1. Inflation remains a pressing concern, with 24% of small business owners identifying it as their top operational issue. Despite some improvements in cash flow, hiring, and revenue expectations, overall sentiment is near historic lows due to persistent inflation and economic uncertainty.

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Sources:

money.usnews.com/investing/news/articles/2024-04-09/us-small-business-sentiment-slides-to-lowest-level-in-more-than-11-years

www.nfib.com/surveys/small-business-economic-trends/

www.uschamber.com/small-business/state-of-small-business-now

open.lib.umn.edu/exploringbusiness/chapter/5-2-the-importance-of-small-business-to-the-u-s-economy/

www.uschamber.com/small-business/small-business-data-center


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