WASHINGTON, D.C. (July 16, 2012) — Only one in five small businesses expect to add employees in 2013, and 82 percent think the national economy is on the wrong track, according to the U.S. Chamber of Commerce’s fifth quarterly small business survey released today.
“Washington’s policies are not meeting our country’s fiscal challenges and are prolonging uncertainty among small businesses,” said Dr. Martin Regalia, the Chamber’s chief economist. “Washington can restore confidence for small businesses in this country by addressing the fiscal cliff, removing regulatory barriers, increasing energy production, and starting over on bipartisan health care legislation.”
The poll of 1,225 small business owners, conducted online between July 2 and July 9 by Harris Interactive, found that nine out of 10 small businesses are concerned about Congress’ ability to reach consensus on expiring tax rates and other business provisions coupled with sequestration cuts — the so-called “fiscal cliff.” Fifty-nine percent say failure to address the fiscal cliff will have a direct impact on their company’s growth.
Of the small businesses surveyed, 72 percent said the healthcare law will make it harder for them to hire. Specifically, they will scale back their workforce to avoid triggering the employer mandate and cut back on full-time workers.
Seventy-eight percent of small business owners are looking for government to “get out of the way,” noting that decisions in Washington impact their business. Additionally, 96 percent believe it is important to vote for a candidate that supports free enterprise.
“We need a change in Washington in order to stimulate economic growth and create jobs,” said the Chamber’s Senior Vice President and National Political Director Rob Engstrom. “Small business owners cannot afford more of the same failed policies.”
The survey defined a small business as a company with fewer than 500 employees and annual revenues of less than $25 million.
Get a complete copy of the Q2 Small Business Outlook Survey here.