Gen X business owners are Main Street’s least optimistic on economy

As the US economy enters the last quarter of the year, uncertainty continues. Consumers and big businesses are resilient, but Main Street is still feeling the pinch from inflation and changing policies.

Conclusion? These mixed signals keep many small business owners on the sidelines when it comes to hiring and investing. Latest CNBC|SurveyMonkey Small Business Survey captures this distinction and reveals how entrepreneurs evaluate risks in today’s unstable economy.

This quarter’s data shows a sharp generational divide. While some small business owners remain hopeful, Generation X entrepreneurs bear the most economic anxiety. They are the least confident group when it comes to both their own job stability and the outlook for the United States; This reflects the increasing pressure on Generation X leaders to sustain growth in an unpredictable economy.

The findings point to a two-fold challenge: Established Gen Xers are most unsettled by the current situation, while young entrepreneurs are increasingly worried about the future. Although they are more optimistic about long-term growth, Gen Z and Millennial business owners show the highest concern about a potential recession.

Today’s pressures are front and center for Gen X entrepreneurs, many of whom are at the peak of earnings and growth. These small business owners are focused on near-term economic threats, from rising costs to changing demand.

Generation X is consistently the generation least confident in today’s economy and business environment:

• Thirty-nine percent of Gen
• Only a third (35%) of Gen X small business owners say current business conditions are good, compared to 48% of Gen Z and Millennials and 40% of Silent/Boomers.
• Although there is a very small gap between generations, Generation Xers remain the most skeptical about the state of the economy; Only 34% see the economy as excellent or good right now. Relative optimism is evident among both Gen Z and Millennials (39%) and their boomer/quiet counterparts (42%), although there is still a minority among these groups.

For these entrepreneurs at the peak of their careers, economic hardship is constant and tangible. Inflation, labor costs and operational stability weigh heavily on their outlook, shaping a more cautious outlook for the year ahead.

This lack of trust extends beyond their own operations to the institutions that shape the economy. When asked about the Federal Reserve’s effectiveness in fighting inflation, Generation X small business owners again stand out as the most skeptical group. Only 37% of these holders have confidence in the Federal Reserve’s ability to control inflation; This lags behind the higher trust percentages reported by small business owners from Gen Z and Millennials (43%) and Boomers/Silent Generation (48%).

But at the same time, Generation Z and Generation Y entrepreneurs are focused on the next step. Seventy-three percent expect a recession in the United States, compared to 66% of Gen Xers and 58% of Boomers/silent Generations.

The data highlights how small business stress and economic anxiety can take different forms across age groups: a pessimistic present for Gen X leaders and a fearful future for younger generations. Those who run most of today’s small businesses are navigating a depressing economy. Recognizing these generational pressures—immediate anxiety versus looming uncertainty—is key to understanding the true state of Main Street as we enter the new year.

— With Eric JohnsonSurveyMonkey CEO