Mr Branding: Small Business Are Investing Heavily in Marketing Due to the Recession, New Study Reveals

Thursday, October 13, 2022

Small Business Are Investing Heavily in Marketing Due to the Recession, New Study Reveals

There has been much debate this new about whether or not the contractions in the global economy amount to a recession, but by now small businesses are operating under the assumption that a recession is fully underway with all things having been considered and taken into account. According to this poll conducted by Clarify Capital, around 71% of businesses are expecting a recession, and they are cutting their costs because of the fact that this is the sort of thing that could potentially end up helping them weather the uncertain economic times ahead.

With all of that having been said and now out of the way, it is important to note that 70% of small to medium businesses are also concerned that they may not be able to survive another recession. 34% are attempting to tackle this by purchasing fewer items, 32% are delaying upgrades to their equipment, and a similar number also stated that they are eliminating discretionary spending for the foreseeable future.

In spite of the fact that this is the case, small to medium businesses are investing rather heavily into marketing. 46% said that they will be increasing their marketing investments in the latter half of this year, and 43% are emphasizing online sales portals that can make it easier for customers to buy from them than might have been the case otherwise. 36% also said that they are trying to diversify their supply chain.

43% of small to medium businesses have seen their number of customers decline in the past year. That is a startling number, and it will important to see which businesses manage to weather the storm. If most of these businesses are unable to drive their customer acquisition rates up, they might not be able to survive and that will leave the economic landscape greatly changed.

Major corporations might squeeze smaller businesses out thanks to their ability to take losses for a much longer period of time. Small businesses need all of the help that they can get, and if they don’t get this assistance quickly these numbers will start to look even worse by 2023.