Small Business Survey
The U.S. Chamber of Commerce’s latest quarterly small business survey finds that Washington policies continue to hamper hiring and growth, with over a quarter of small businesses saying they have lost employees in the last year.
Health Care Law is Top Concern
- Concern about Obamacare has increased by 10-points since June 2011 and by 4 points since last quarter.
- 71% of small businesses say the health care law makes it harder to hire.
- Only 30% say they are prepared for the requirements of the law, including participation in the marketplaces.
- Among small businesses that will be impacted by the employer mandate, one-half of small businesses say that they will either cut hours to reduce full time employees OR replace full time employees with part-time workers to avoid the mandate. 24% say they will reduce hiring to stay under 50 employees.
Outlook for Hiring Remains Grim
- 77% continue to think the U.S. economy is on the wrong track. However, small businesses are more optimistic about their local economy and individual business.
- The majority (61%) of small businesses do not have plans to hire next year.
Small Businesses Looking for Legislative Solutions, Not More Regulation
- Concerns about regulation have increased significantly from 35% last quarter to 42% now.
- Small businesses are looking for leadership on issues that will remove barriers and encourage growth.
- 88% of all small businesses support addressing entitlement spending to resolve America’s growing financial challenges and escalating debt.
- 83% support Congressional efforts to reform the tax code—with the majority focusing on making it less complex.
- 81% of small businesses surveyed believe the immigration system is broken and needs to be reformed.
- In contrast to the President’s recent speech pushing new energy regulations, 90% of small businesses support easing EPA regulations and opening up more federal lands for drilling.
- The only thing that scares small businesses more than what Washington has already done (23%) is what the federal government will do next (63%). 78% of small businesses are concerned about the prospect of Nancy Pelosi regaining her speakership following the 2014 elections.
The Q2 U.S. Chamber of Commerce Small Business Outlook Survey was conducted online between June 21 – July 8 by Harris Interactive among 1,304 Small Business Executives (defined as executive level position in a company with fewer than 500 employees and annual revenue less than $25 M).