Small Businesses Optimistic Despite Government Fiscal Fiascos
According to a recent outlook survey, U.S. small and mid-sized business owners are not impressed with the country’s lawmakers right now. Pepperdine University and Dun & Bradstreet Credibility Corp. released study results showing small business owners believe recent legislation has had a negative impact on their businesses. A perceived lack of progress during the recession and a tough financial climate over the last few years caused many entrepreneurs to grow frustrated with the rate of economic recovery.
Conducted each year, the Pepperdine University and Dun & Bradstreet Credibility Corp. survey polled business owners with 25 questions asking what they thought about the present state of the U.S. economy, what goals they set for their organization for the year, and what obstructions they faced in reaching those goals. Out of 2,713 respondents surveyed, 90 percent had $10 million or less in annual revenue; 94 percent had 50 or fewer employees.
Many respondents reported that volatility in Washington and financial instability curbed their ability to hire, and declined to congratulate government officials for avoiding the fiscal cliff. Approximately 83 percent of small business owners claimed they would not give raises to employees as a way to offset higher payroll taxes.
The study also found that 66 percent of small business owners reported they believed the economic outlook remained relatively unchanged after Congress completed its fiscal cliff negotiations.
Despite a seemingly dour outlook on the government regarding U.S. finances, in previous years the study did not ask small business owners if government gridlocks hurt their plans to hire new talent, which means this study alone cannot determine whether outlook regarding Washington has improved or declined year-over-year. Small business owners also want Washington to reduce the nation’s debt.
Even though the economic downturn dampened some small business owners’ perspective on the overall economic prospects of the country, many have a renewed optimism regarding their own business’s future. Despite disgust with Capitol Hill debates, 45 percent of business owners claimed they were more optimistic about growth prospects for their business this year than they were in 2012. A recent Entrepreneur magazine article reported that about 70 percent of small business owners did feel less confident about their business’s future growth and potential return on investments this year.
Small-business owners who are still concerned about the economic uncertainty can consult National Funding about pursuing a small business loan or merchant cash advance to secure finances for this year.