Written by Parabellum Investments
6 May
In a recent article for Deseret News, Rami Cassis argues that rising optimism among small and mid-sized businesses in the U.S., particularly in Utah, may be leading to overconfidence and poor risk management amid a volatile economic landscape.
Cassis warns that while reduced regulation and tax cuts from the new administration have encouraged growth, smaller firms may be ignoring growing threats such as inflation, unstable markets, and cuts to government spending that could hamper innovation. Utah’s dynamic tech sector, he notes, makes it especially vulnerable given its high concentration of entrepreneurial, fast-scaling companies.
He cautions that many business leaders lack formal management training and are often unprepared for economic downturns. Without strategic planning and risk mitigation, some small and mid-sized firms could find themselves overcommitted and exposed – a scenario that could undermine the broader U.S. economy. Cassis calls for a more measured, pragmatic approach to growth.
“My worry is that economic optimism, especially among our smaller businesses, has tipped over into irrational exuberance. Many small business leaders are so bullish on the economy that they are blinded to the real risks — and they aren’t taking the careful management decisions every sensible business should.”
Read the full article here.
