Small Businesses in a Holding PatternThe January 2024 Freedom Economy Index (FEI), co-published by PublicSquare and RedBalloon, reveals that small businesses across America are locking down their spending and adopting a cautious "wait-and-see" approach. With 80% of businesses holding back on major capital purchases and 65% neither hiring nor reducing staff, it’s clear that many are in a holding pattern, waiting for better economic conditions.Financial Stress and Debt RisingThe financial strain on both businesses and employees remains significant. One in three businesses reported taking on more debt in 2023 just to survive, while 70% of business owners stated that their employees and contractors are falling behind financially. Despite some signs of stabilization, the pressures of debt and financial hardship continue to mount.Inflation Shows Signs of Easing, But Remains a ChallengeInflation may be easing slightly, with 86.7% of respondents believing inflation will remain higher for longer, down from 91.5% in November. However, 73% of businesses reported that supplier prices increased in December, and 53% were forced to raise their own prices once again. Many small businesses are finding it increasingly difficult to absorb these price hikes without losing customers.A Blue Christmas for RetailersThe Christmas season proved challenging for many small businesses, with 41.3% reporting slower-than-normal economic activity and 59.7% saying the season did not meet their expectations. Consumer confidence remains a major concern, with 77.1% of businesses expressing a negative outlook on consumer confidence going into the new year.Key Insights from the 2023 Freedom EconomyAs the FEI tracks economic trends, it also offers insights into the Freedom Economy’s cultural landscape. The biggest “woke” backfire of 2023? Bud Light, according to 47.6% of respondents. In terms of pro-freedom voices, Tucker Carlson and Elon Musk led the way as the most influential figures in 2023, with Dan Bongino named the top podcaster of the year.Looking Ahead with CautionAs we move into 2024, the FEI shows that America’s small businesses are navigating a landscape filled with uncertainty. Many are holding back on spending, hiring, and growth plans until they see a more stable economy. The year ahead will require resilience and adaptability, with small business owners continuing to shoulder the burden of inflation, financial strain, and fluctuating consumer confidence.For a deeper dive into the January 2024 Freedom Economy Index, including insights into consumer confidence, pro-freedom voices, and the future outlook of small businesses, you can read the full report.
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