A new SMB Readiness Report from G&A Partners, released July 29, finds that economic pressure, new legislation, and tougher federal enforcement are stacking up on small and midsize businesses. The survey reports that 87% of owners have changed how they run their business as a result.
For self-employed owners and microbusiness operators, the report puts numbers to a strain many already feel. It also shows a gap between how owners describe the climate and the confident bets some are still making.
What The Report Found
The headline figure is stark: 1 in 5 small and midsize businesses, or 20%, say they may be forced to close within the next year. To offset rising costs, 83% of owners report that they have already raised their prices.
Sentiment is split rather than uniformly gloomy. Just under half of leaders, 46%, say they have lost confidence in achieving the American Dream, yet 57% still predict stability over the next 12 months and 40% expect growth or expansion.
Why This Matters For Self-Employed Owners
The smallest operators tend to absorb cost increases with the least cushion, so a report showing widespread price hikes reflects a survival tactic more than a growth strategy. A freelancer or sole proprietor raising rates to keep pace with expenses is making the same move as the businesses in this survey.
The confidence gap is the more useful signal. When many owners doubt the long-term payoff yet still expect near-term stability, it suggests they are managing quarter to quarter rather than planning years ahead, a posture that shapes hiring, borrowing, and investment.
What Self-Employed Owners Should Do Next
Owners feeling the squeeze should revisit pricing deliberately rather than reactively. Raising a rate to match rising costs is reasonable, but it works best when paired with a clear look at which clients and services actually carry the business.
Building a cash reserve deserves priority when 1 in 5 peers fear closing. Setting aside even a small percentage of each payment for taxes and slow stretches gives a solo operator room to absorb a shock without turning to expensive credit.
What To Watch Next
Whether that 20% closure fear turns into actual closures will depend on how costs, demand, and new rules move through the rest of the year. The direction of consumer spending in particular will decide how much pricing power small operators retain.
Self-employed owners can read this alongside broader confidence measures, which have been choppy, including the latest NFIB small business optimism reading. Tracking sentiment and cash position together gives a clearer picture than either number alone.
Photo by Noppon Meenuch: Unsplash
