U.S. Chamber of Commerce Q4 Small Business Outlook Survey

Despite passage of a fiscal cliff package, small business uncertainty abounds according to the U.S. Chamber’s new quarterly small business survey conducted online by Harris Interactive. Concerns about the economy, the debt and deficit, and the health care bill are cited as top challenges. More than half (53%) of all small businesses have not hired in the past year, and 64% plan to keep the same number of employees in 2013.

Quarter 4
Small Business Outlook Survey - January 2013

Among the key findings from the small business owners surveyed:

Small Business Climate Remains Bleak

• Eight-out-of-ten small businesses (82%) continue to think the U.S. economy is off on the wrong track. More than half, 54%, expect the small business climate to worsen in the next two years.
• 88% of small businesses are looking for more certainty, opposed to more assistance from Washington.

 
Regulatory Uncertainty Impacts Hiring

• 86% of small businesses believe that regulations, restrictions, and taxes will negatively impact their ability to operate. Health care regulations cause the most concern, followed by labor rules and environmental laws.
• 75% of small businesses expect the Affordable Care Act to increase costs for their business; 5% expect the law to make health care coverage more affordable. In terms of hiring, 71% think that implementation of the health care law will make it harder to hire more employees.

 
Small Businesses Look for Solutions to Fiscal Challenges

• 88% of all small businesses surveyed are supportive of addressing entitlement spending to resolve America’s growing financial challenges and escalating debt.
• 62% see the current debt and deficit as a threat to the success of their businesses.
• 92% of small businesses feel that a comprehensive approach to energy exploration and increased revenue from production is important to addressing our country’s fiscal challenges.

Methodology

The Q4 U.S. Chamber of Commerce Small Business Outlook Survey was conducted online between December 17, 2012 and January 2, 2013 by Harris Interactive among 1,482* Small Business Executives (defined as executive level position in a company with fewer than 500 employees and annual revenue less than $25 M).

*658 U.S. Chamber of Commerce Members and 824 Non-U.S. Chamber of Commerce Members, weighted to be representative of the small business population