SMBs Sound the Alarm: 94% of Small Business Owners Fear Recession

- National study by LegalShield reveals 85% of small business owners are anxious about tariff impact

- Company's internal data shows uptick in SMB collections, billing disputes and bankruptcy inquiries at levels not seen since 2020‍

ADA, Okla. (May 5, 2025) — Small business owners across America are increasingly concerned about economic uncertainty and the impact of potential tariffs, according to a new national study released by LegalShield. The study, which polled small business owners and managers, reveals mounting anxiety about a potential recession and significant worry about trade policy changes.

Key study findings:

• 94% of small business owners and managers are worried about a potential recession
• 85% are concerned that tariffs may impact their business
• 55% anticipate direct legal implications from tariff policy changes
• 64% expect supply chain and partner agreement disruptions
• 47% believe they could face workforce adjustments, including potential downsizing

“Small businesses are the backbone of the American economy, yet they’re increasingly caught in the crosshairs of economic uncertainty and shifting trade policies,” said Mike Fiffik, LegalShield provider lawyer with Fiffik Law Group, PC. “These businesses often lack the legal resources of larger corporations to navigate complex regulatory changes, leaving them particularly vulnerable during periods of economic volatility.”

The study also revealed that small business owners are particularly concerned about:

• Supply chain renegotiations and contract disputes (55%)
• Employment law and workforce adjustments (47%)
• Tariff-related regulatory compliance (44%)

“The legal implications of tariff changes are vast and complex, particularly for small businesses that often lack in-house legal counsel,” Fiffik added. “From supplier contract renegotiations to regulatory compliance issues and potential employment impacts, there’s a growing need for accessible and affordable legal assistance.”

LegalShield’s internal data showed significant spikes in small business-related legal inquiries in 2025, including:

• Surge in business contracts and collections issues in Q1 (up 27% year-over-year for collections/billing disputes)
• Bankruptcy inquiries at levels not seen since 2020

About the survey: This survey was conducted using an online survey platform. The survey was conducted between March 28-31, 2025 among a sample of 500 small business owners and managers age 18+, representative of the U.S. adult population. The margin of error for the full sample is +/-4 percentage points with a 95% confidence level.

About LegalShield

LegalShield is one of North America’s leading providers of legal services, offering individuals, families and businesses of all sizes access to professional legal counsel for a low monthly fee. In addition, the company’s IDShield brand provides identity protection services to individuals and families. LegalShield and IDShield have more than 4.8 million members across North America. LegalShield is headquartered in Ada, Oklahoma. For more information, visit LegalShield.com or IDShield.com. To learn more about becoming a LegalShield provider lawyer, visit https://www.idshield.com.