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The economy helped many small businesses thrive in 2019, but 2020 could be a whole different story.

SCORE’s latest infographic highlights the outlook and challenges for small businesses in 2020.

The US economy is strong, but slowing:

• GDP growth will drop:
  • 2.2% in 2019
  • 2.0% in 2020
  • 1.9% in 2021
• Unemployment will increase:
  • 3.6% in 2019
  • 3.5% in 2020
  • 3.6% in 2021
• Inflation will increase:
  • 1.6% in 2019
  • 1.9% in 2020
  • 2.0% in 2021
• Manufacturing will decrease:
  • 2.2% in 2019
  • 2.0% in 2020
  • 1.9% in 2021

Most small business owners feel only “somewhat prepared” for the challenges ahead.

• 24% of business owners feel very prepared.
• 62% feel somewhat prepared.
• 13% feel not very prepared.
• 1% feel not at all prepared.

Challenge #1: Economic downturn

• 11% of business owners feel an economic downtown is extremely likely.
• 22% feel it is very likely.
• 34% feel it is somewhat likely.
• 27% feel it is not very likely
• 6% feel it is not at all likely.

How to prepare:

• 75% rate their company’s cash flow in 2019 as “good” or “very good” so apply for financing while your numbers are strong.

Challenge #2: Tight labor market

Most companies cannot fill open positions.

How to prepare:

• 43% of the US workforce will be freelancers by 2020 so take advantage of the growing freelancer pool.
• 50% of workers will be working remotely so offer perks to attract and keep employees, such as remote work.

Challenge #3: Cyberattacks

43% of cyberattacks target small businesses.

How to prepare:

• Watch SCORE’s webinar “What Small Businesses Need to Know About Cybersecurity”
• Read our “The Small Business Guide to Cybersecurity” to develop a plan

Challenge #4: Natural disasters

40 to 60% of small businesses never reopen their doors after a disaster.

How to prepare:

• Browse through our Small Business Disaster Preparedness Resources

Work with a SCORE mentor to help you prepare your small business for the new decade.

Infographic designed by Easel.ly.