Some polls out this week tell us that small business owners are becoming more cautious.
The latest Intuit poll on small business employment suggests that hiring in small businesses has, once again cooled off. While there were some gains earlier this year, the modest improvement we had been seeing seems to have stalled.
The results from a poll by Citigroup offers some insights as to why the optimism for economic improvement among small business owners has once again begun to sour. From the Wall Street Journal:
Nothing coming out of Washington is helping to calm their fears. Every group of entrepreneurs I talk asks me the same basic question: "When are the politicians going to wake up and understand that all we need from government is for them to get out of our way?"
Given that they are hearing that higher taxes and more regulation are on the way, and that policy makers trying to manage the economy do not trust free enterprise and free markets, it is no wonder that they are not very optimistic about the future.
The latest Intuit poll on small business employment suggests that hiring in small businesses has, once again cooled off. While there were some gains earlier this year, the modest improvement we had been seeing seems to have stalled.
The results from a poll by Citigroup offers some insights as to why the optimism for economic improvement among small business owners has once again begun to sour. From the Wall Street Journal:
So it seems that those entrepreneurs whose businesses have survived the downturn are taking a more prudent course and preparing for more difficult economic times ahead.More than 85% of small-business owners are worried about a double-dip recession, according to the latest quarterly survey by banking giant Citigroup Inc.
But three-quarters of those polled said they are very or somewhat prepared for another downturn.
Mirroring results of previous surveys, 76% rated current business conditions as fair or poor.
Nothing coming out of Washington is helping to calm their fears. Every group of entrepreneurs I talk asks me the same basic question: "When are the politicians going to wake up and understand that all we need from government is for them to get out of our way?"
Given that they are hearing that higher taxes and more regulation are on the way, and that policy makers trying to manage the economy do not trust free enterprise and free markets, it is no wonder that they are not very optimistic about the future.
This sounds like more Fox-Republican FUD to me. When you say, "Given that they are hearing that higher taxes and more regulation are on the way..." where do they get that crap. Only a few percent of small businesses will any change at all. Maybe if they listen to the Fox propaganda less (or FOX started reporting the real facts instead of FOX-FACTS(TM)) then they wouldn't be so worried.
--Will
Will,
Come back a few times and read what I have to say. As you do, you will see that I am not much of a fan of either side of the aisle in Washington -- and not that much of a fan of any of the television news media outlets either.
Where do I get the view that more taxes and regulation are on the way? Why from the mouths of the leadership in Washington. Why does it concern me and why does it concern small business owners? Look into the research. The negative correlation between higher taxes and business start-up activity is conclusive. And the same is true about the negative impact on business longevity. The percentages are actually very significant and quite high.
Jeff
Oh c'mon... you aren't fooling anybody. I read your blog here and there and the right-wing undertones are very apparent. Some what ironically, its a rather poor marketing move as you completely turns off any potential readers (or your blog and books) that don't align with your political ideology.
Furthermore, you are unsurprisingly distorting what "Will Rubin" is saying. Well, that or you think small business owners are too stupid to read and understand the details of this administrations policy proposals. Obama's tax increases (which are really just partial reversals of a past tax-cuts) would effect very few small-businesses.
Also, your statement that "The negative correlation between higher taxes and business start-up activity is conclusive" is so general as to be meaningless. But why don't you actually cite some research so we can know what you're actually talking about? Oh yes, we are suppose to search for research that supports your position...I forgot.
Tyler,
Welcome back.
Let me first say that those undertones you are sensing are for open opportunity to pursue business ventures, free markets, free citizens, and small government. I also try to mix in a strong dose of civic and moral responsibility, for without it, entrepreneurs run the risk of having these freedoms taken away from them. I am sure that my viewpoints turn a certain number of people away. So be it. My hope is that all of us can find our way back to public discourse that is based on debating ideas and principles in a civil manner. I certainly read books and blogs written by those with whom I strongly disagree. And quite frankly, a few of them have shaped my thinking over time.
How is a reversal of a tax cut not a tax increase?? Taxes will go up, so they...increase. Not sure how you can say they "would effect very few small businesses"? Almost every small business in America is a pass through tax entity (no corporate tax, only individual tax liability passed through from business profits). Any income tax change impacts all small businesses.
And the source of the statistics? Your very favorite source of everything -- the US government. Here is the link to the 2005 study: http://www.sba.gov/advo/research/rs252.pdf
Keep coming back!
Jeff