How SMBs Are Preparing for a Recession

How SMBs Are Preparing for a Recession

Economic uncertainty has lasted long enough that many SMBs now expect a recession, and they’re taking concrete steps to prepare. In a June 2026 Bredin SMB survey of 500 U.S. SMB decision-makers, 41% say a recession is very likely in the next 12 months or already underway. That view is shared by very small businesses (VSBs, 1–19 employees), small businesses (SBs, 20–99 employees) and midsize businesses (MBs, 100–1,000 employees) alike.

• Very small businesses (VSBs, less than 20 employees): 42%
• Small businesses (SBs, with 20 to 99 employees): 40%
• Midsized businesses (MBs, with 100 to 1,000 employees): 37%

How Likely SMBs Think a Recession is in the Next 12 Months

SMBs are preparing for a recession by building cash reserves, reducing debt, and cutting discretionary spending. Compared with our Fall 2025 State of SMB survey, which reflected broad economic anxiety, this year's findings show that SMBs have moved from concern to taking concrete steps to strengthen their financial position.

‍How SMBs Are Preparing for a Potential Recession‍

‍Note: SMBs that think a recession is very likely in the next 12 months, or that we’re already in one

• Building cash reserves is the top step for small (54%) and midsize (55%) businesses, and very small businesses rank it third (45%).
• Very small businesses focus most on cutting discretionary spending (51%) and reducing debt (47%).
• Midsize businesses are significantly more likely than very small businesses to diversify revenue (41% vs. 22%), accelerate collections (39% vs. 23%) and reduce headcount or hiring plans (29% vs. 14%).
• 16% of very small businesses that expect a recession aren’t making specific preparations, compared with 5% of small and 2% of midsize businesses.

For more, see our State of SMB report and how SMBs are facing economic challenges.

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