Small business owners are regaining their economic optimism, according to the March edition of the Freedom Economy Index survey, a joint project of PublicSquare and RedBalloon. The survey, which sampled 80,000 small business owners from March 15-19, found that while recession fears are easing, employers are still cautious about making significant growth plans. PublicSquare CEO Michael Seifert noted that small business owners are clearly feeling a turning in the economy but are not willing to bet the farm just yet on which direction the economy will turn next.
One notable finding from the survey is the failing report card given to Gen Z in the workplace. According to the survey, 68% of small business owners find Gen Zers to be the least reliable of all their employees, and 71% say Gen Z is the most likely group to have a workplace mental health issue. Additionally, less than 4% say that Gen Z is the generation that most aligns with their workplace culture, while 62% say Gen Z is the most likely group to cause division and toxicity in the workplace. Andrew Crapuchettes, CEO of RedBalloon.work, stated that the 2024 labor market will be one of the most difficult in decades, noting that with large scale retirements by baby boomers, the market needs an influx of new talent, but Gen Z is clearly struggling to make the grade.
The survey also highlighted the ongoing reliability drought in the labor market, with 70% of employers citing lack of reliability as their top problem when hiring. As a result, 60% of employers said they would rather be understaffed with fewer employees but more hours for the business owners than poorly staffed with more employees but more problems. The full report of the Freedom Economy Index can be found at https://www.redballoon.work/freedom-economy-index. This data matters because it reveals a critical disconnect between small business needs and emerging workforce capabilities at a time when economic recovery depends on both business confidence and labor market stability.
The implications of these findings are significant for both economic policy and workplace management strategies. The cautious optimism among small business owners suggests potential for economic growth, but this is tempered by serious concerns about workforce quality and reliability. The generational challenges highlighted in the survey point to systemic issues in workforce development and workplace culture adaptation that could hinder business expansion and productivity. With small businesses representing a substantial portion of employment and economic activity, these workforce reliability problems could slow overall economic recovery and growth.
Furthermore, the preference for understaffing over poor staffing reveals how deeply reliability concerns are affecting business operations and decision-making. This trend could lead to increased burnout among existing employees and business owners, potentially creating a cycle of workforce challenges that becomes increasingly difficult to break. The survey results suggest that addressing these workforce issues will be crucial for sustaining the economic optimism currently emerging among small business owners and for ensuring that this optimism translates into actual business growth and expansion in the coming months.
