How SMBs Are Preparing for a Recession

How SMBs Are Preparing for a Recession

Economic uncertainty has become so persistent that it’s shaping how SMBs plan for the future. In our new survey of 500 U.S. SMB principals, 41% believe a recession is either very likely or already here, with little variation by company size:

• 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

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