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As we slowly bounce back from the pandemic in 2022, small business owners remain optimistic but face inflation, the tightest job market in recent memory and continued challenges in sourcing supplies. was doing. While it’s unclear whether a recession will strike as we enter 2023, it’s clear that small business owners will continue to face operational challenges. Nonetheless, business owners remain resolutely resilient, with a survey of economic outlooks showing that a majority expect revenues to increase this year, with many planning to expand. So what should entrepreneurs expect in 2023?
Inflationary pressure continues.
The Federal Reserve will continue to battle inflation in 2023, which could lead to another rate hike. Small business owners must be proactive in managing costs and developing strategies to improve efficiency. There may be opportunities to invest in technology, streamline processes, and integrate services and accounts.
Cybersecurity attacks on small businesses will increase.
According to Forbes, small businesses account for over 40% of all data breaches. As risks grow, it’s more important than ever for businesses to be protected from cyberattacks. The first step in protecting your business from such a breach is to understand the measures currently in place. Talk to your insurance company, internet service provider, or banking institution to find out how your business is protected and what additional steps you can take.
Borrowing costs remain high.
Business owners looking for access to capital should familiarize themselves with local CDFIs and economic development organizations. These lending programs often have features that make them attractive in a high interest rate environment, such as low closing costs and flexible terms. For those with credit cards, finding ways to offset high interest rates with credit cards that offer rewards, or 0% balance transfers may be worth considering alternatives.
The labor market remains high.
While it is difficult for SMEs to compete for labor in this market, those looking to hire offer a better culture and flexible working environment, with benefits such as hybrid workplaces and flexible schedules. This can give you a competitive advantage.
Strategic planning is better than reactive.
We don’t know if there will be a recession, but small business owners need to be prepared to weather the ups and downs, and there’s no better way to achieve long-term success than with strategic planning. The process of developing a growth strategy requires developing deep insight into business operations, their strengths and weaknesses, threats, and growth opportunities.
For entrepreneurs looking to become better strategic thinkers, the Greater Philadelphia Hispanic Chamber of Commerce offers practical and strategic guidance for business owners to manage their businesses and develop three-year growth plans. We offer Accelerate Business, an entrepreneurial education program that helps develop thinking skills. The program is accepting applications for the Spring 2023 cohort. To apply, visit philahispanicchamber.org.
Jennifer I. Rodríguez Greater Philadelphia Hispanic Chamber of Commerce.
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