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The Small Business Outlook is Improving but Hasn’t Impacted Hiring Trends
While small business confidence is increasing, with a 7% increase in the confidence of the economy since January, hiring has remained stagnant. Q1 saw a slight increase in the number of small businesses who have lost employees in the last year (30%). Nearly half of small business respondents (49%) have kept the same number of staff, and only 20% have hired in the last year.
Concerns about over-regulation are the highest we’ve seen in the past year, with 42% of small businesses citing it as a major concern and 52% citing regulations as the top threat to their business, increasing 9 percentage points since last June.
What do concerns about regulations and policies mean for small businesses? Stalled growth. 80% of small businesses surveyed report the taxation, regulation, and legislation from Washington make it harder for their business to hire more employees. Nearly three-out-of-four (73%) of small businesses surveyed cite the recent health care law as an obstacle to growing their business and hiring more employees.
Energy Prices are a Growing Threat to Small Businesses
There are real concerns about rising energy prices—and no sense that the administration is doing much about it. The perceived threat of gas prices on small businesses has more than doubled, from 10% of respondents citing it as a top concern in January to 24% in March.
Seventy eight percent think the Obama Administration has not done enough to keep prices low, increase domestic sources of energy, or support American job creation. In Congress, only 2% of Democrats are trusted to address domestic energy production.
Small Businesses Recognize the Link between Politics and Policy
A vast majority (97%) of small businesses surveyed cite a candidate’s support for the free enterprise system as important, 84% cite as very important.
Almost as many small businesses, (92%) think the business community should lead the American Recovery, compared to 8% who think the federal government has the best solutions.
The vast majority of small businesses still are looking for the government to get out of the way (81%) and for more certainty opposed to government assistance.
Small businesses see all bureaucrats in Washington as the problem but have sharpened their criticism of the Administration and Congressional Democrats in the past 9 months. Close to half of all respondents approve of the job the House Republican Majority is doing; only 8% approve of the Senate Democrat Majority. Sixteen percent of small businesses approve of the job President Obama is doing.
94% of small business members cite the Chamber’s voter education efforts as important; 70% say it is very important in educating the public on political issues.
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And liberals are like dogs . They bark till everyone is annoyed.
87% of people apparently think it's the government's job to fix the economy. Luckily, the economy in my area has been getting much better- but then again, my area was one of the worst hit, also.
Some area's of the country got hit very little in the resession. The midweat [ where I live] got hit the least . That still doesnt over shadow the fact unemployment is still above 8% and inflation is now making everyday living harder and harder for everyone. Gas,food,clothing,utilities,and everyday expences are starting to skyrocket. This is what is hurting small business and why they have a dismal outlook on the future.
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And liberals are like dogs . They bark till everyone is annoyed.
Some area's of the country got hit very little in the resession. The midweat [ where I live] got hit the least . That still doesnt over shadow the fact unemployment is still above 8% and inflation is now making everyday living harder and harder for everyone. Gas,food,clothing,utilities,and everyday expences are starting to skyrocket. This is what is hurting small business and why they have a dismal outlook on the future.
I don't know that I would say dismal. It's at least improving. Given that we were in this pointless war during our crash, I'm just happy we're not wearing leather and killing each other for autogyro fuel.
As for the other "skyrocketing" costs, I don't know where you live, but it's not happening here.
A lot of small businesses here are improving. I see a lot hiring and renting or buying space to expand. I'm starting work for one in August or September when they finish building new buildings.
And it has everything to do with consumer demand, not Washington or energy prices even if they are going higher.
I can agree completely with these findings... nothing new here.
What you fail miserably to realize, is that it's not policies or particular politicians that create the uncertainty. It's the complete stalemate in our congress, and the misinformation touted by both parties (but mostly the republicans).
Take a close look at those charts booger... Energy costs and taxes are in the bottom half of concerns... the fact that "too much regulation" is mid-pack and WELL short of the driving factors should indicate that things aren't nearly as bad as you think they are.
But because of the infighting and spineless tactics used to confuse and delay real action... not any CURRENT state of our economy (which my all measures is getting better and headed in the right direction.)
__________________ Stacy King (I'm a guy dammit!!) - Owner - Asphalt Ventures
Small Business Outlook Survey - March 2012
