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Most Small Business Owners Already Pay Above Minimum Wage

Most Small Business Owners Already Pay Above Minimum Wage
Credit: hin255/Shutterstock

Where do small business owners stand on minimum wage? According to this year's Small Business Success Study by insurance company The Hartford, the majority are in favor of increasing it, and many already pay their employees more than the minimum.

Sixty-six percent of small business owners support increasing the federal minimum wage, the study found. And many small business owners wouldn't need to make any changes to meet an increased minimum; 58 percent would not or do not need to take any action if an increase were enacted, according to the report.

And of the 51 percent of small business owners that pay their staff hourly, 81 percent already pay above the current minimum wage, and 67 percent favor the proposal to increase minimum wage. [Minimum Wage Hikes: 4 Ways to Prepare Now ]

Here are additional interesting findings from the study, which surveyed more than 2,000 small business owners:

  • More small business owners are feeling successful and are less concerned about macroeconomic factors than in previous years.
    • Seventy-seven percent report feeling successful, up from 69 percent in 2011. 
    • Business owners saw slow economic growth (56 percent), taxes (40 percent) and health care costs (39 percent) as major risks to their business – sharp decreases from 2012.
  • The majority of these owners continue to be risk averse and are not hiring. 
    • More than half (55 percent) of small business owners said they operate their businesses' finances more conservatively due to the most recent recession.
    • In the past six months, 74 percent have kept the number of risks they take with their businesses constant.
    • Sixty-seven percent have not hired anyone in the last year, similar to 2013 (64 percent).
  • Small business owners are finding it easier to obtain loans, yet personal sources of funding now rival commercial loans.
    • Forty-six percent of owners said they believe it's slightly difficult or not difficult at all to get loans or other capital for their businesses, a 39 percent increase from 2012.
    • Thirty-one percent used commercial sources to fund their businesses in the past year, while 36 percent have used personal sources. 

Originally published on Business News Daily.

Brittney Helmrich

Brittney M. Helmrich graduated from Drew University in 2012 with a B.A. in History and Creative Writing. She joined the Business News Daily team in 2014 after working as the editor-in-chief of an online college life and advice publication for two years. Follow Brittney on Twitter at @brittneyplz, or contact her by email.