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The Russell 2000 (RUT) index of small-cap stocks is on the cusp of entering a %BearMarket defined as a decline of 20% or more from recent highs.

Several times in March, the index that is comprised mostly of stocks with market capitalizations of $10 billion U.S. or less has been down 19% from its 52-week high of 2,449.86 reached last November.

Each time, the index has rallied back and it is currently down 16% from its most recent peak. However, analysts say it likely won’t take much to tip the small-cap index into a bear market.

Analysts say the small-cap index has been battered more than other U.S. indices because it’s comprised of smaller companies and is more susceptible to economic downturns.

Notable small-cap stocks that are part of the Russell 2000 include %ComfortSystemsUSA (NYSE: $FIX ), %SproutsFarmersMarket (NASDAQ: $SFM ), and Abercrombie & Fitch (NYSE: $ANF ).

These smaller companies have thinner profit margins and quickly drop when market turmoil hits.

The year-to-date decline in the %Russell2000 is double the falloff in the benchmark S&P 500 index since it hit an all-time high in February of this year.

Analysts also highlight that the Russell 2000 is more focused on the U.S. domestically and has less overseas exposure.

There are also signs of dwindling sentiment among small businesses in America.

The National Federation of Independent Business’ monthly survey of small businesses recently showed that optimism dropped for a second consecutive month and is at a multi-year low.