What can small businesses look forward to in the year to come? That’s an important question for many. According to data from the Census Bureau’s Annual Survey of Entrepreneurs (2016), there are 5.6 million employer firms in the U.S.
Companies with fewer than 500 workers accounted for 99.7% of those businesses while those with less than 100 employees made up 98.2%. Have 20 workers or less? You’re in good company! Businesses like yours comprise 89.0% of the total.
Of course, the economic outlook will affect not only your operation but others if you own an Allegra Marketing Print Mail Center. The prospects of the local businesses as well as organizations and nonprofits you serve will impact your bottom line.
The good news? The forecast is favorable for 2020. As reported by The Balance in their article, US Economic Outlook for 2019 and Beyond, experts are predicting steady growth.
The U.S. economic outlook is healthy according to the key economic indicators. The most critical indicator is the gross domestic product, which measures the nation’s production output. The GDP growth rate is expected to remain between the 2% to 3% ideal range. Unemployment is forecast to continue at the natural rate. There isn’t too much inflation or deflation. That’s a Goldilocks economy.
While slowing slightly, the nation’s signs of economic growth remain good. Per the article:
U.S. GDP growth will slow to 2.2% in 2019 from 3% in 2018. It will be 2% in 2020 and 1.9% in 2021. That’s according to the most recent forecast released at the Federal Open Market Committee meeting on September 18, 2019.
For businesses contemplating expansion through acquisition or capital improvements, the outlook is also positive if borrowing money figures into your planning. The article notes:
The Federal Open Market Committee lowered the current fed funds rate to 2.0% on September 18, 2019. It doesn’t expect to increase this interest rate for the foreseeable future. In fact, it hinted it may lower it again in 2019. The Fed is more concerned about inhibiting growth than about preventing inflation. It doesn’t see inflation as a threat anytime in the next three years.
If there’s a cloudy sky in the forecast, it may be the difficulty of some companies to attract and retain workers. But, even so, economic trends for the year to come favor small businesses like Allegra Centers. The Balance reports:
The unemployment rate will average 3.7% in 2019 and 2020. It will bump up to 3.8% in 2021. That’s lower than the Fed’s 6.7% target. But former Federal Reserve Chair Janet Yellen noted a lot of workers are part-time and would prefer full-time work. Also, most job growth is in low-paying retail and food service industries.