The economy has been a limiting factor for many small firm owners, stressing the importance of having business insurance policies for protection. Recent research from the The Small Business Authority showed six in 10 small-business owners think the uncertainty surrounding issues in Washington are hindering their growth prospects.
When asked, “Which of the following items has had the greatest negative effect on the economy?” Twenty-two percent said the income tax increase and 18 percent said the payroll tax increase. With the government limiting smaller firms more than ever, it may be difficult to achieve the levels of success that were orginally forecasted by a company.
“With all of the data obtained in today’s society, our independent business owners are still most concerned over the confusion and uncertainty in Washington,” said Barry Sloane, chairman, president and CEO of The Small Business Authority. “Despite payroll tax increases, Obamacare, and a weak economy, the uncertainty over what the Federal Government is doing to the business climate is our small business clienteles’ biggest worry.”
Hiring could also be limited
Uncertainty in Washington is not just impeding growth prospects, but it may also impact hiring decisions for the foreseeable future. Research conducted at Indiana University’s Kelley School of Business, showed firm owners aren’t quite sure what to think about different aspects of the economy and it is pulling business segments in different directions. The limited growth is making it difficult for small-business owners to invest in new workers.
“The uncertainty and lack of confidence in Washington continues to put a damper on future decision making, risk taking and economic forward thinking,” continued Sloane.
