Alongside thousands of formerly employed federal and corporate workers lies a second group of Americans hit hard by downsized jobs and lost wages without ever receiving a formal pink slip: small business owners.

The economic downturn is hitting the middle class and entrepreneurs hard.

73% of U.S. workers are struggling financially, unable to afford anything beyond basic living expenses, according to the 2025 Wage Reality Report . This financial strain leads to reduced discretionary spending, directly impacting small businesses that rely on middle-class consumers.

“Some of us are scaling back, opening fewer days to cut overhead, or collaborating with others to share costs,” said Owings Mills, Maryland-based entrepreneur Dr. Chere Goode. Founder of Total Harmony Enterprises , she cont

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