Small Business Outlook for Economy Declines Due to Economic Hurdles Imposed by Washington
WASHINGTON, D.C.—Small businesses’ outlook for the United States economy declined in the third quarter and fewer expect to hire additional employees, with many executives citing government taxes and regulations as significant hurdles, according to a poll conducted online for the U.S. Chamber of Commerce by Harris Interactive between September 29 and October 6, 2011.
“The voices of Main Street businesses are telling us plain and simple: To start hiring, we need faster economic growth and a change of course in Washington,” said U.S. Chamber President and CEO Thomas J. Donohue. “Washington can help by passing pro-growth policies that will grow the economy, create jobs, and give businesses the certainty they need to invest and hire. With government spending and regulations out of control, small businesses don’t know what’s going to hit them next.”
The poll of 1,330 small business executives found nearly nine out of ten (89%) now believe the U.S. economy is on the wrong track. Only 17% expect to add employees over the next year, down from 19% in July. The survey defined a small business as a company with fewer than 500 employees and annual revenues of less than $25 million.
The small business owners continue to cite the health care law as one of their greatest challenges, as 41% pointed to it as a top concern, despite passage more than a year and a half ago.
The poll pointed to positive reactions to the Chamber’s six point jobs plans, which was sent to the president and Congress last month, particularly when it came to increasing domestic energy production (80% view as effective), speeding up permitting and provide regulatory relief (74%), and passing tax incentives that will create jobs and increase revenue (67%). This contrasted strong unfavorable opinions of the President’s Jobs Plan, which four out of five (80%) viewed unfavorably.
To read a complete copy of the Q3 Small Business Outlook Survey, please visit: http://www.uschambersmallbusinessnation.com/community/quarterly-survey-2
Survey Methodology
This survey was conducted online within the United States by Harris Interactive on behalf of the U.S. Chamber of Commerce from September 29 to October 6, 2011 among 1,330 U.S. Chamber of Commerce Members and Non-U.S. Chamber of Commerce Members. Data was weighted to be representative of the small business population. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact J.P. Fielder at 202-463-5682.