October 2006

Survey identifies small-business owners concerns

Healthcare, tax relief, and energy policy are the top issues among small business owners as they prepare to vote in the mid-term elections, according to the OPEN from American Express Small Business Monitor, a semi-annual survey of business owners.

Healthcare and tax relief are cited by nearly one in five small business owners (19 percent) as the issues that will most sway their votes in November, followed closely by energy policy (cited by 15 percent).

According to the survey, the number of small businesses offering healthcare benefits to employees jumped significantly (71 percent vs. 54 percent last year). High energy costs have taken a toll. Nearly half (45 percent) of business owners report that higher gas and energy costs have had a significant impact on their business.

Despite these concerns, business growth and customer service remain the focus of small business owners nationwide who say they are increasingly feeling the effects of the economy. While still robust, optimism around growth has waned this fall.

Those expecting their businesses to grow despite the current economic climate declined to 43 percent from 49 percent a year ago, and fewer expect this year’s revenues to exceed last year’s (44 percent down from 51 percent).

Although entrepreneurs face challenges to growth, they still love what they do and can’t imagine making a living any other way (38 percent vs. 44 percent last spring). One in four describes running their business as an uphill battle (25 percent).

One in five finds the business financially rewarding (22 percent), and one in ten experience 24/7 stress as a result of managing their business (10 percent).

However, two-thirds (69 percent) would recommend a friend or family member go into business for themselves. The top reasons for their success, according to the survey are “I’m able to create good relationships and a sense of community through my business” (31 percent), and “I’ve struck a balance between my career and my family” (28 percent).

The most desired aspect of running a small business is that owners/managers enjoy living and working by their own rules (38 percent).

The personality trait found to be most important in helping small business owners succeed in their business is being knowledgeable about every detail of the business (27 percent). Ironically, the personality trait most negatively affecting business is that they are too hands on (28 percent).

One third of business owners (36 percent) find they are most frustrated with not having enough time which was up sharply from the spring (23 percent).

This survey, released each spring and fall, is based on a nationally representative sample of 625 small business owners/managers of companies with fewer than 100 employees.

Source: OPEN from American Express, www.OPEN.com

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