Small Businesses Remain Strong
Audio version available here:
Length: approx. 1 min. 30 sec.
Recently, small to medium businesses in the United States have enjoyed a trend of growth. Though fears and uncertainties around higher-for-longer interest rates and inflation ticking back up again currently plague the nation, Main Street business owners have reported higher revenue, enough to outpace US GDP growth in 2023.
The gap between US GDP and Main Street small to medium business revenue has been shrinking since 2021, and in 2023, Main Street finally took charge. With revenue “growing by 6%”, the continuation of an “upward trajectory” from the last few years in 2023 surpassed the national GDP growth of 5.7%. This has proved the resiliency of Main Street in a difficult economy.
Not only has revenue gone up for small and medium businesses, the risk of failing has had only a miniscule increase. Dozens of major retailers faced nation-wide closures in 2023, with almost 3000 stores shutting down between retailers like Bed Bath and Beyond, CVS, and Macy’s. Meanwhile, small and medium businesses only reported a 2% increase in closures. This is despite “bankruptcies increas[ing] by 40% in 2023”.
Despite the good news for small business owners, it would be wise to not take the statistics at face value. Not all sectors of small businesses have experienced growth at the same rate. Understanding your business’s position within the trend is how you can make informed decisions. To do so, you need to know your numbers. Don’t have a reliable accountant to keep track of your business’s numbers and help you understand them? The financial experts at XQ CPA are happy to help you. Give us a call, or book a free consultation online at the link below.
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