Despite Fears of Recession, Optimism Across New Small Business Owners Increases, According to Newest Block Advisors’ “Small Business Resilience Series” Survey
15 November 2022 - 2:30PM
In recognition of National Entrepreneurship Day, Block Advisors,
part of H&R Block (NYSE: HRB), is sharing new survey data from
its “Small Business Resilience Series.” The latest survey reveals
small business owners’ attitudes toward the state of their
businesses in today’s economic climate.
According to the survey, two in three small
business owners report feeling the threat of an impending
recession, including first time small business owners who make up
72% of respondents. Despite those looming concerns, 65% of those
operating for fewer than two years still feel optimistic about
their businesses’ financial futures. This is a jump of seven
percentage points from 2021 – likely due to changes small business
owners are making, given nearly 60% of small business owners say
they’re conducting business differently to keep pace with new and
ongoing challenges.
“The pandemic posed challenges to America’s
entrepreneurs, but also spurred a once-in-a-generation surge in new
business practices and formats, giving small business owners
confidence about weathering economic storms,” said Jamil Khan,
Chief Strategy and Small Business Officer at H&R Block. “We’re
excited by the innovation our small business certified tax pros are
seeing. Whether they are trying to form or operate their first
business, or have established several businesses, Block Advisors is
well-equipped to advise small business owners through every step of
their journey – ranging from business growth strategies, to making
the most of write-offs, to better positioning themselves in an
uncertain economic environment.”
Block Advisors recently launched its online
business formation tool to streamline the complicated process of
registering a business entity, which could be the first step in
taking a small business to the next level, according to Khan.
There are several recommendations Block Advisors
has for small businesses to set themselves up for success in any
economic climate and help put every dollar in their pockets, which
include:
- Keeping separate accounts for personal and business use
- Checking with a tax professional before year end to ensure
estimates are on track
- Discussing if a business structure change is a good idea, such
as forming an LLC
- Deciding to move ahead with equipment or purchases that qualify
for 100% bonus depreciation
- Keeping thorough records and receipts to deduct all ordinary
and necessary business expenditures, including travel, insurance,
rent, utilities, and advertising
- Claiming the qualified business income deduction and discussing
with a tax professional whether the business qualifies for any
special credits or may qualify for a credit next year
- Considering maximizing contributions to retirement plans or an
IRA, or taking steps to set up a business retirement plan and start
funding it
The survey revealed additional insights around
burnout and the role of help for small business owners.
According to the majority of small business owners
surveyed, fears of a recession have created additional stress for
those who are already working to find new ways of operating
businesses. The Block Advisors “Small Business Resilience Series”
survey also revealed these feelings are even more pronounced among
new small business owners operating less than two years as 52% are
feeling burned out.
Though most small business owners (77%) are proud
of their resilience, they also realize the power of help, leading
to 51% of small business owners seeking tax professionals for
assistance building their businesses. Block Advisors provides tax,
payroll, and bookkeeping services to more than 2.4 million small
business owners.
“Whether entrepreneurs and small business owners
need assistance with taxes, payroll, bookkeeping, or business
formation, Block Advisors can help,” said Khan. “We are experts of
this work and are committed to taking on the heavy lifting to help
small business owners spend time focusing on what is most important
to them.”
To learn more about Block Advisors, please visit
our website: https://www.blockadvisors.com/.
About the “Small Business Resilience
Series” survey
Block Advisors was founded with the mission to
serve small businesses. That’s why it commissioned a survey with
more than 1,000 business owners to inform the “Small Business
Resilience Series.” Each year, Block Advisors’ release of this data
gives a snapshot of America’s small business landscape. With 8,000
offices nationwide, Block Advisors is available to help small
business owners year-round with their specialized tax, bookkeeping,
payroll, and other needs.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and
inspires confidence in its clients and communities everywhere
through global tax preparation services, financial
products, and small business solutions. The company blends
digital innovation with human expertise and care as it helps people
get the best outcome at tax time and also be better with money
using its mobile banking app, Spruce. Through Block
Advisors and Wave, the company helps small business
owners thrive with innovative products like Wave Money, a
mobile-first, small business bank account and bookkeeping solution,
that manages bookkeeping automatically. For more
information, H&R Block News or
follow @HRBlockNews on Twitter.
For Further Information
Investor Relations: Michaella Gallina, (816) 854-3022, michaella.gallina@hrblock.com
Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
Media Relations: Angela Davied, (816) 854-5798, angela.davied@hrblock.com
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