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Oct 25B2B CFO

Small Business outlook and Election impact

Oct 25B2B CFO

Attached below are excerpts taken from a recent article I saw in Inc. com. I believe the views from the survey are in line with what I am hearing from small business owners. I would add that irrespective of one’s political views as to who may win the election in November, one thing seems certain and that is by having the election over, this will reduce some of the unease that people are feeling today. However, this unease will only be further dissipated when our leaders in Washington put policies in place that provide the vast majority of Americans with a renewed sense of purpose and direction. This will then lead to an improving economy, an increased demand for services and an improving labor market for those seeking employment.

The normally  upbeat small business owner is expressing alarming concern over the economy, according to the SurePayroll Small Business Scorecard for September. The optimism survey found that fewer than 1 in 2–or just 45%–of small business owners are optimistic, a sharp 15-point drop from 60% in August.This drop in optimism has likely caused the small business economy to decelerate, as our survey shows hiring down 0.2% and paychecks flat. This spells potentially bad news for growth in the near future, and maybe even beyond.

Why has the glass suddenly become half empty to a group of people who are normally ready to take on the world, regardless of the odds of success? The election seems to be weighing heavily on the minds of small business owners.

When we asked them whether the election was having an impact on how optimistic or pessimistic they are about the economy, and an overwhelming 77% of 411 respondents said yes.

So what specifically is driving small business owners’ vote? On top of their collective list is: fiscal policy, tax policy, health care, the national debt, and national security.

While these survey results among small business owners may not surprise political reporters, the level at which optimism has been knocked off track is alarming. Whoever is elected and whatever he plans to do to create more jobs, he better keep small businesses top of mind. Small companies, after all, will ultimately help put the country back to work.  

Let me conclude that while everyone I have spoken to recently can’t wait for Nov.7th, it is even more important for small businesses, when this lack of certainty will end. Hopefully whomever wins will then get down to providing leadership in addressing the critical issues facing the country and especially small businesses!  

B2B CFO®

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