Financial expert warns of a pessimistic outlook for the self-employed and small businesses for 2024

Financial expert warns of a pessimistic outlook for the self-employed and small businesses for 2024

According to a report by presse-augsburg.de,

Self-employed people and small entrepreneurs are pessimistic about the year 2024. According to a Schufa company survey, 60 percent of small businesses and 53 percent of self-employed people fear a loss of sales or income. The order situation has worsened compared to 2022 for more than a third of micro-entrepreneurs and self-employed people. The difficult economic situation is particularly burdened by general price increases and high levels of bureaucracy. In response, half of the small businesses and almost 40 percent of the self-employed have increased their prices and postponed necessary investments. What makes matters worse is that almost a third of small businesses and 17 percent of self-employed people have overdrawn their company accounts in the past six months. Almost half of small businesses expect difficulties in paying salaries and a quarter see the risk of having to lay off employees.

This uncertainty and pessimistic outlook among the self-employed and small businesses can lead to a cautious investment attitude and a lower willingness to consume. This could have a negative impact on economic development, particularly GDP growth. In addition, an increased number of corporate bankruptcies and unemployment could further increase socio-economic burdens. Politicians and the financial sector must take measures to stabilize the financial situation of the self-employed and small businesses and to ensure long-term support.