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Despite recent jumps in the stock market, consumer confidence and the housing market, small business owners are still worried about gridlock in Washington. As a result, those feelings are having a big effect on the way those business owners feel about the future of their businesses.
Researchers found that a majority of business owners say that uncertainty in Washington is the biggest factor affecting the economy and as a result, their businesses. Overall, 60 percent of small business owners say that the uncertainty in Washington has had the biggest negative impact on their business.
Other small business owners say that tax increases are the biggest factors affecting their businesses going forward. To that end, 22 percent of respondents called income tax increases the greatest negative effect on the economy, while 18 percent called the payroll tax increase the biggest drag on the economy.
"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 Newtek, which conducted the research. "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."
The researchers found that economic uncertainty is having a big impact on the outlook of small business owners. As a result, many small business owners are still cautious in their decision- making for the future of their businesses.
"The uncertainty and lack of confidence in Washington continues to put a damper on future decision-making, risk-taking and economic forward-thinking," said Sloane.
The research was based on the responses of 1,800 respondents for Newtek, which has a portfolio of more than 100,000 business accounts.