Hello Alice surveyed 2,635 small business owners on our platform to understand their overall sentiment and challenges heading into 2023.
Published in partnership with Mastercard, this research elaborates on four key findings to outline small business trends to track throughout 2023. Additionally, results informed a resource list to address owner needs expressed in the survey.
Here are four key takeaways about small business owners in 2023:
1) Inflation Remains a Top-of-Mind Concern
69% of small business owners said that the effects of inflation on their businesses worsened throughout 2022, forcing them to increase prices and adjust product offerings. Nearly 70% of owners applied for funding to manage inflation-related challenges in 2022, and another 70% plan to do so in 2023.
2) Owners Are Optimistic They Have the Tools To Grow
Small business owners have managed to counteract inflation — so far.
Despite clear economic headwinds, 64% of surveyed owners said their business performed better or about the same as in 2021. Similarly, 57% of owners said that their business performed as expected or better in 2022.
Overall, small businesses feel well-positioned for success. Almost three-quarters (73%) of surveyed owners predict their businesses will grow in 2023.
3) Marketing Will Be a Key Determinant of Success
Top concerns for 2023 include losing customers due to price increases (57%) and not being able to acquire new customers (54%). Owners must optimize their marketing efforts to avoid these outcomes.
4) Current Outlook Hinges on a Potential Recession
Twice as many owners plan to hire in 2023 than were actively hiring in 2022. However, 65% of owners are worried about a potential recession, which they fear will reduce sales, limit cash flow, and make it harder to access credit.
2023 Resources for Small Business Owners
Share the following resources with small business owners in your network. Each resource targets the emerging and ongoing challenges recorded by this survey.
Small Business Funding Center
Access to capital ensures owners are able to fund growth, pursue opportunities, and respond to unforeseen challenges. Hello Alice’s Small Business Funding Center connects owners with the full continuum of capital — including loans, financing, and credit cards — they need to run their businesses.
Hello Alice Programs
Learn best practices and crowdsource wisdom from a community of more than a million small business owners. Hello Alice offers live events, workshops, accelerators, and digital learning experiences to help entrepreneurs level up and succeed.
Mastercard Digital Doors®
Get the most out of digital tools and protect your business from online threats. Mastercard Digital Doors® provides best-in-class tools and resources to help business owners enhance their digital operations from setting up shop online, digital marketing, cyber security, digital payments, and finance management to be their digital best.
Business Solutions Center
From services that optimize marketing campaigns to online platforms to hire freelance support, Hello Alice’s Business Solutions Center curates dozens of offers that save owners time and money. Our team recommends the best tools, software, and services to simplify decisions and help small businesses scale.
More Resources & Context
About Hello Alice
A Latina-owned company founded by Carolyn Rodz and Elizabeth Gore, Hello Alice (helloalice.com) is a free, multichannel platform that helps businesses grow. We believe in business for all by providing access to all owners, including women, people of color, military-connected individuals, the LGBTQ+ community, persons with disabilities, and every American with an entrepreneurial spirit.