Elected officials, policymakers, analysts and talking heads would be wise to keep in mind entrepreneurship is essential to economic, income and employment growth in the United States. Indeed, the U.S. economy very much is a small business economy — illustrated by the fact 98 percent of all businesses (employer firms and nonemployers) have fewer than 20 employees. Consequently, the views and expectations of small business owners should matter to us all.

The  latest Small Business & Entrepreneurship Council Small Business Check Up Survey is filled to the brim with critical findings regarding the views of small business owners on a host of issues. Let’s take a quick a look at small business views on the economy:

Small business owners are positive on the current business environment, and that’s great. Indeed, 42 percent say it’s good and 20 percent excellent.

Looking at economic conditions over the next six months, 37 percent see matters getting worse, 32 percent expect conditions to remain about the same and 27 percent anticipate improvement.

Entrepreneurs are worried about the economy over the coming year, with 87 percent concerned about inflation — 49 percent very concerned and 38 percent somewhat concerned. Meanwhile,
81 percent are concerned about a slowdown or recession — 43 percent very concerned and 38 percent somewhat concerned. In fact, 71 percent of small business owners say they’re actively preparing for a recession.

Finally, it’s not surprising most entrepreneurs tend to be optimistic about the outlook for their businesses. It’s hard to be an entrepreneur and remain pessimist about one’s own venture. But that optimism about their businesses sometimes align with and sometimes strays from small business owners’ views on the broader economy.
That’s the current case, according to SBE Council survey. While 61 percent of small business owners are optimistic about own enterprises, 38 percent had a poor and 33 percent a fair outlook for the economy in 2024.

Elected officials and their political appointees need to take these assessments seriously given the primary role small businesses play in our economy.

Too many elected officials seem content spending time, resources and political capital attacking and undermining their favorite political targets — from leading technology or pharmaceutical businesses to immigrants who meet labor needs and start businesses. Such political crusades only inflict additional burdens on small businesses that drive tech and pharmaceutical innovations, seek employees and generate growth in nearly all other industries thanks to native-born and foreign-born entrepreneurs.

Entrepreneurs, investors and workers who build businesses would be far better served with politics being pushed aside in favor of sound economic policies focused on tax and regulatory relief, advancing free trade, protecting property rights, pushing forward with welcoming immigration reforms and reining in government spending. That’s not to mention sound monetary policy focused solely on price stability.