Why Tech Companies Signal Trouble Ahead For Small Businesses

By: Anneken Tappe · November 20, 2023 · Reading Time: 2 minutes

Software Squeeze

Times have been tough for software vendors catering to small and medium-sized businesses, or SMBs.

A tricky economic climate, with elevated inflation and high interest rates weighing on consumers, have made potential investors in the sector increasingly skeptical.

Reading the Economic Tea Leaves

Major players across the sector have issued cautious forecasts, including HubSpot (HUBS), BILL Holdings (BILL), and ZoomInfo (ZI).

These warnings also align with other indicators, including a recent decline in retail sales, and worsening consumer sentiment, which could lead to a ripple effect across various sectors.

Why SMBs Matter

The U.S. economy isn’t just made of blue chip corporations. SMBs employ nearly half of the U.S. workforce, and contribute 43.5% of GDP, according to the U.S. Chamber of Commerce . The health of the sector is key to our economy, community, and comfort.

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