"Burden of inflation"—Shark Tank investor Barbara Corcoran shares how entrepreneurs are hit hardest during economic downturn

Barbara Corcoran, the entrepreneur and Shark Tank investor, shared her insights during an interview on the iHeart Radio podcast on April 9, 2025, regarding the effects of the current economic downturn on small businesses.

While inflation has impacted everyone across various income levels, Corcoran highlighted that entrepreneurs, especially those running small businesses, face a particularly heavy burden.

"The more lower class you are, the more you pick up the burden of inflation, of not being able to find home for yourself at an affordable rate, everything really sits on your chest more than they have to press," she said.

As the Shark Tank investor emphasized, small business owners are feeling the weight of these hardships and many of them are struggling with little support.

The impact of inflation on small business owners, according to Shark Tank's Barbara Corcoran

Entrepreneurs face unique challenges in economic downturns

The economic crisis has put a lot of pressure on entrepreneurs, particularly those running small enterprises. Barbara Corcoran highlighted the fact that small business proprietors are especially susceptible owing to their small size and limited resources.

"These are really great people who have their heart in the right place, they employ half of Americans," she said, underscoring the importance of small businesses in the U.S. economy.

As the Shark Tank investor explained, many are forced to reduce their workforce or make other difficult decisions.

"They're firing people, they don't know how to order the goods differently, they can't call the SBA, they don't answer their phone," she added

Barbara also pointed out that small business owners lack the negotiating leverage of big businesses. She again asserted that the "little guys" cannot access suppliers or resources that would enable them to navigate the situation.

The personal toll on small business owners

For entrepreneurs, the recession is more than a fiscal issue; it is an intensely personal one. Corcoran described how many entrepreneurs feel alone and panick as they try to ride out the tough times.

The Shark Tank investor acknowledged that these individuals have already been through a lot, having just recovered from the consequences of the COVID-19 pandemic.

"They just came through COVID and made it through and now they get hit by a cyclone like wow, where do we turn?" Corcoran mentioned.

Despite the psychological strain the current economic conditions have imposed on business owners, Barbara stressed the need to be positive-minded. Though admitting the situation is challenging for most, she highlighted the necessity for entrepreneurs to stay active and concerned with the need to come up with solutions.

"I think it’s more attitude than it is factuality," Corcoran stated.

She added that while the facts may seem bleak, attitude plays a crucial role in how entrepreneurs can handle these challenges.

Seeking solutions and support in times of hardship

In response to the economic struggles faced by small business owners, the Shark Tank investor is working to create opportunities for support and collaboration.

"I’m bringing all my entrepreneurs into New York next week... and we’re brainstorming like crazy," she shared.

She added that the purpose of this meeting is not only to immediately solve problems, but to establish a community among entrepreneurs who encounter the same challenges. In addition, Corcoran mentioned that she feels that offering entrepreneurs a forum where they can talk about their problems and share insights is instrumental in turning around these testing times.

"What I want them to do is share the support for each other," she said.

Watch new episodes of Shark Tank every Friday at 8 PM ET on ABC, with streaming available on Hulu.

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