Small Business Uncertainty

Small businesses will play the largest role in our economy’s recovery, but what is surprising is what has changed as far as the rationale for their lack of expansion.  The number one cited issue is what’s going on in Congress.  The debate over the debt limit has been at the top of most peoples’ lists, but it’s not the only concern for small business owners.  Most feel they are an impending target for liberal politicians looking to raise taxes.  Most politicians fail to understand that going after those that make more than $250,000 a year is a direct assault on small business owners because their business income is directly tied to their personal income.  They are also worried about the continuous onslaught of regulations handed down by the Environmental Protection Agency (EPA), as well as the new rules affecting how they do banking.  Of course the biggest concern is the impact of Obamacare, as they are still uncertain how these new laws will affect them.  The unfortunate part of all this is that small business owners aren’t expecting to see an economic rebound sufficient enough to convince them to add to their staffs any time soon.  The vast majority (64%) expect no additional hiring while 12% said they would be forced to reduce their current staff in the very near future.  This only leaves 24% that feel they may have an opportunity to increase their workforce in the next year.  Given that small business accounts for between half and three quarters of the jobs in the US economy, that is a depressing assessment.  I’m quite certain President Reagan was right, “…government is the problem.”  What you say?