Small Businesses Want Fewer Regulations, More Customers

Government regulations take the biggest toll on small businesses, according to a new Gallup poll.

The Gallup Small Business Index, which polled more than 600 small-business owners in early October, showed that of all the possible obstacles facing small businesses, 22 percent felt government regulations caused the biggest problem, while 15 percent noted consumer confidence and 12 percent blamed a lack of consumer demand. Other issues cited by business owners included a lack of credit availability and poor leadership by the government. Surprisingly, the lack of jobs in the market was noted as the least problematic.

Many small-business owners are still worried about the fate of their business, with one in three owners saying they are moderately or very worried about going out of business. A similar number of small-business owners were moderately or very worried about competing with large or global competitors, not being able to hire employees or being unable to pay employees. Thirty percent fear they will have to cut down the size of their staff in the coming year.

"Given this situation and the fragility of the economy, I think a moratorium on new government regulations would be beneficial," said chief economist Dennis Jacobe, the author of the study. "We can leave arguments about the public benefit of new government regulations versus the cost to business for another –- better – economic situation."

Although many small-business owners will continue to face problems in 2012, many are just as worried about the long term. According to the poll, 67 percent of the owners are worried about not being able to save enough money for retirement, while nearly 50 percent fear they don't spend enough time with family or pursuing personal interests.

Small-business owners continue to hope for a turnaround, with 15 percent noting that a jump in sales will help their businesses to grow and thrive in the coming year. Other positive changes they'd like to see include job creation (14 percent) and fewer government regulations (12 percent), which will motivate them to hire new employees.

As far as whether more businesses felt positive or negative about the current economy, the poll indicates that most have been feeling pretty neutral since last summer and are simply doing what they can to stay ahead. Many look forward to the upcoming holiday shopping season, although another Gallup poll may indicate they have little to look forward to. According to the poll, Americans plan on spending an average of $712, the same as last year and about $200 less than in 2006, while one-third of Americans plan on spending $500 or less on holiday gifts. "This means another tough time this holiday for small businesses as they battle to get sales," Jacobe said. "Small businesses need an improved economy and new jobs in order to not only survive but thrive in 2012."

Comments

[imlah]

02:47 AM on 10/31/2011

Over regulation is a canard. The propaganda machine continues to grind out the woes of regulations while knowing full well that the overwhelming benefits for cutting regulations will go to the big multinational companies at the expense of small business and consumers. As long as small businesses swallow this drivel, they'll never stop to examine the purposes of regulations. They'll simply parrot the idea that all regulations are bad, which only helps the big boys.

[oilfield]

11:31 PM on 10/27/2011

there is nothing worse than having to borrow money to grow while simultaneously paying quarterly taxes at 35%......

[angelshalo321]

07:15 PM on 10/26/2011

small businesses want less regulations so they can hire more illegals ???

[Brandon DuBois]

03:05 AM on 10/31/2011

do you read the news? also, i have yet to even meet an unemployed person who wants to go pick oranges. just saying.

[hollyann1963]

12:59 PM on 10/26/2011

If universal healthcare, like all other industrialized countries have, was to be put in place. Businesses would not have that cost added to the cost of their products and services. Prices would be more competitive. Wages could be more flexible to reward the harder workers. And income would be greater.

[nothingchanges]

09:31 AM on 10/26/2011

Having been forced to close my small business of decades, I personally would have to say that my biggest issues have all had to do with the decline of ethics in almost every facet of American Society. Most notably business.

I started bidding on Government contracts to get away from the "bid peddling" so prevalent in my area in the private sector, only to have ethics issues expand into the Government arena as well.

All civilizations rise and fall, it saddens me to realize I lived at a time to witness first hand, America reach its probable apex, then begin it's decline.

[PeterNPaul]

07:05 AM on 10/26/2011

I have owned small businesses for more than 25 years. I have never had a "real" job (and it is the last thing I would ever want). Small business is demand driven and success based, pure and simple. It takes me about $400K annual revenues to support one employee as market value salary for my employees is around $50-60K as they are skilled workers. Somebody has to go find that.

As the years have gone by, one thing that I find missing from today's labor market are real salespeople. The old timers knew how to sell. There is no school for that. They were true entrepreneurs and rainmakers. The best ones didn't want a salary or benefits as they were their own small business already. Those people are now very scarce.

Typically the first question I get when I am interviewing a salesperson is about salary, not opportunity. We have become detached as a society from relationship selling as todays "salespeople" think that selling is sending an email. I know, I deal with them everyday.

I truly think you create your own demand and it is out there for the taking in most instances. In my business, I need more true creative rainmakers. I know America does, just look on any job board.

[Davi Car]

07:28 AM on 10/26/2011

Bingo!

[oilfield]

10:22 PM on 10/27/2011

the rainmakers are in short supply for sure.....any salesman that would work on straight commission is a rare find....we are in a market where we basically fight for a fraction of 1% that we take from the big multinationals......if i had enough good salespeople, we could do 100m a year.

[PeterNPaul]

08:31 AM on 10/28/2011

That is the case for a lot of small businesses. I often get calls from India for outsourcing etc (which I never use by the way) who are out beating the bushes, I am amazed at the difference in their sales people and ours.

You are lucky if you get a callback from an American company even when you seek out and express an interest in their product. Many websites only have an email address for sales and the sales line goes to a voicemail blackhole. I looked at a site the other day---no phone number anywhere, only an email link. What are we doing?

If you do get are lucky enough to get a callback it is from a junior person who is typically a waste of time. It's bad and getting worse.

[vippy]

05:30 AM on 10/26/2011

The problem is obvious.  Lack of customers, who don't have money and that is the majority.  High gas prices, rising grocery prices coupled with stagnant wages - there you go!  This is not science.  Just look around your town and see the many empty store fronts.  Even the malls said to be 10% empty but truth is, some that open also close within a short period.  If WalMart cries then you know we have a problem.  
Always said, one has to pay the people so they can spend and then you have an economy.  Rely on the 1% to keep up the economy is ludicrous.  But it was planned that way by our politicians, yes, both parties are guilty and may I point out what the founder of the Federal Reserve had said back in 1913, 
we will have a one world government, whether by conquest or consent!

[Davi Car]

07:35 AM on 10/26/2011

I hope that one world government will come by consent, and that it will emerge soon.

[atexasdem]

02:49 AM on 10/26/2011

These guys are absolutely wrong. Knowing multiple small business owners the biggest problem is lack of capital and credit. The banks just are not loaning money. Example: My son, after working twenty years in the commercial kitchen equipment business is fighting for his dream of owning his own business. He installs and repairs the equipment used in commercial kitchens, restaurants etc..
With "seed money" from mom and dad, plus his savings he did it. Restaurants love his level of service, he gets calls all the time from restaurants to service their kitchen equipment. He can't do it though. He can't take on more customers and grow yet. The reason is he can't get the credit to buy parts. No bank will touch him and parts houses are not in the credit business. Customers expect their equipment to be repaired not "I'd fix it if I could afford the parts". His business is not unique. I have another friend who after getting laid off started his own business.
He does metal fabrication. He focuses on racks and conveyor systems but the man can make anything out of metal. He has the tools and the skills. He has customers calling because they know his work from when he worked for others. He is stuck because he doesn't have the capital to buy materials for jobs. The identical story is being repeated over and over. Banks are just not lending to small business. They consider small businesses to much of a risk.

[oilfield]

11:24 PM on 10/27/2011

about the only way for those 2 scenarios is to buy on credit cards....even rda and sba require some equity. we are growing over 20% a year and as the dollars get larger, its harder to keep up.

[Peter Combs]

11:23 PM on 10/25/2011

well...I am not sure what will grow the economy other than continue our slow recovery and in time it will improve. I do know that spending more money and adding more debt to my Grandchildren's lives isn;t an option...sorry. Our generation MADE the mess...now we have to suck it up.

[kyleewonder777]

01:46 AM on 10/26/2011

Sorry, our whole generation did not create this mess, wall street, politicians and mega corps did a fine job all by themselves, and if you believe that tired old talking point about worrying about the children, that one doesn't fly anymore either. The republicans keep floating that out there hoping it will stick, the goal is to privatize ss and mediare, and I for one am going to fight. Oh and, those children everyone seems to be so worried about are the OWS, and they can take care of themselves and might just take care of the rest of us while they are at it.

[Peter Combs]

12:00 AM on 10/27/2011

Ahh..you need a history lesson and an economics one. The Banking Deregulations were first weakend under the Carter administration in 1978...10 years later we had the S&L collapse...and Billlions in losses from deadbeat homeowners and bank collapses all over, when the dot.com bubble was collapsing during the end of the CLinton years..he first cut income taxes and capital gains taxes and then encouraged Sen Garham to push his bill to repeal Glass Steagle. in 1999 less than 4% of home mortgages were sub Standard loans...by 2006 they were 35% of the market.. Fannie and Freddie set the standard for qualifications, they even made a deal to absorb ALL the loans Countrywide Mortgage could produce as long as they were within the CRA standard..which was minimal..SO now you had Millions of laons trying to get off Fannie and Freddie's books as well as thousands of other banks.

Enter the collateralized loans...and Credit Default Swaps. The American people want liquidity in teh banks so they could buy the dream house and cash in...they borrowed the money..and now everyona cts like they had nothign to do with it...like it was an accident..

I work In finance...everyone knew it was comming...and the Government, the Banks and the People...didn't want to hear it..

[atexasdem]

03:12 AM on 10/26/2011

Peter I partially agree with you. At 64 I've seen good times and bad. Like I always say. Sometimes you eat Alpo, sometimes you eat Steak. I'm a Texan and we're very familiar with boom and bust cycles. I'm retired now but something I see as I drive around is 3/4 of the pickups I see have a sign on them. "Joe's lawn service", "Henry's mobile mechanic service", "Nancy's dog care and grooming". I've never seen so many people starting their own small businesses. I have arthritis and there's a lady that makes heating pads and sells them at festivals and flea markets on the weekends. People are frustrated job hunting with no results. I have never before seen so many people starting small business. Small businesses turn into large businesses. Small business is where it all begins. Many will fail, some will survive and some will grow into big businesses. The government gave the bankers billions but the bankers are just sitting on it. The banks that got bailed out under "to big to fail" must be forced to turn some of that money loose. They have to be forced to support small business. Small business will be the incubator for our recovery. Every big business was once a small business. Without credit though it won't happen.

[Peter Combs]

11:50 PM on 10/26/2011

I understand your frustration, you and I are abot the same age...within a couple years.

First, the Banks got loans..loans that have been paid back with a massive profit to our treasury. Last year the Fed made 71 Billion DOllars...biggest year in their history. During this same time, they did not Bail out Lehman or Bear Sterns...they were broken up and sold off..Stearns went to J P Morgan as part of the TARP deal. COuntrywide and Merrill Lynch had to be bought by Bank of America for the same reason.

These banks got the money because they had a huge likelyhood of being able to pay it all back..which they have and are now done..

The money the Banks are sitting on doesn;t have a viable market right now to lend to..unless the borrower can show assetts..I own a business (started from scratch) and still have the same lines of credit if needed that we had in 2006...nothing changed..its actually been elevated. We don;t use it because their is no expansion.

I might point out, I started my companies in the mid to late 1970's....and early 80's. Money was tight then too and interest rates were over 14% for start ups...and inflation was 13%.

People have to tugh it out..the best they can, adding to the Debt will do nothing. FDR failed..and he tried for 10 years...

[Under Fed yet Fed Up]

10:23 PM on 10/25/2011

As a small business owner I am constantly amused at the widely varying opinions of similar people and what they need to grow their business. I don't have to guess what it takes to grow my business. I don't have to guess what obstacles are in my way. I don't have to guess how to grow despite these issues.

For these surveys to they purposefully seek clueless business owners?

[atexasdem]

03:18 AM on 10/26/2011

I truly hope that you truly are a small business owner and not just saying it. I hope you have read my posts above. I would honestly like to hear what you have to say whether in support of or disagreeing with my position about the lack of credit being made available to small business. Under to big to fail the banks got billions of tax dollars. Unfortunately they have not used those billions to make credit or capital available to start ups and small business. As a small business owner has this effected you?

[Under Fed yet Fed Up]

09:14 AM on 10/26/2011

My avaiability of credit had a two week hiccup in the Spring of 2011. Other than that I've had all the credit I could possibly want. This has not been a problem for me at all.

[oilfield]

11:28 PM on 10/27/2011

the lack of credit isnt because of large banks....its that banks basically dont take risks....they will loan you 1m if you have 2m....

[MyFatCat]

10:22 PM on 10/25/2011

I have a story. It shouldn't be possible for a company to be told that if it wins a competition for a state contract, it will lose all its own IP rights, because the federal grant paying for that contract specifies that everything produced for it will not only be owned by the state but will be given away to other states. That's what's happening to my company now. We aren't big enough to bring a restraint of trade action. We qualify for the work. We can do everything the contract says. Our products work elsewhere and have worked elsewhere for years. We're being told that we cannot maintain our intellectual property investment if we win--all of the IP we've ever developed would become the property of the funding authority. This is a swan song contract: we can win it only if we decide to go out of business afterwards. Patents be damn*d. This is one small company that won't be hiring anybody even though there's more work to be done than there are bodies to do it.

If it's wrong for Napster and file sharing, why is it right for the feds?

Big business needs something to regulate it. Big finance needs something to regulate it. But how does responsible lending get done if some federal grantwriter decides to give away what cost millions to build and big finance won't underwrite bonds?

[ChimpestryII]

02:49 AM on 10/26/2011

Big Business and Big Finance have long ago united with Big Government in using government regulations to protect their interests from competition from smaller companies or from new technologies or business practices. Your story is not unique. The use of regulation to transfer the intellectual property of a company either directly to another business or indirectly through goverment to politically connected companies is as old as AntiTrust laws in America.

If government is made the regulator of business, then some businessmen start selling regulations to government, regulations specifically designed to satisfy the desires of goverment and maximize the profit for the business, discourage or eliminate competition and leave the businesses with positive PR about their eagerness to submit to regulation for the good of ____________ (fill in the blank). You and the company you work for are just another unintended consequence of a regulation no doubt advertised as necessary, wise and entirely without negative effect when the wealthy politicians, lawyers, lobbyists, bureaucrats and political connected corporatists in Washington DC made it law.

[atexasdem]

04:00 AM on 10/26/2011

As a small business owner you have chosen to enter a whole different world. The world of government contracts. Government contracts can either make you wealthy or break you. Be very careful if you want to get into this area of business. The rules are completely different than anything you have ever done before.

[NotNarrow]

10:04 PM on 10/25/2011

I'm a small business owner and the poll seems to confirm my suspicion that group think has set in. Like John McCain's "Joe the plumber," many business owners vote against their own self interests. I'm not sure why. Maybe it's because all of the trade groups are actually driven by the conglomerates who then control the propaganda. Or, perhaps, it is the 'wannabe' syndrome where they think they will be the next rich group. Finally, I question the poll's targeting. The definition of "small business" has changed. The corner store, tradespeople and other mom and pop businesses we think of as small businesses are now classified as "micro enterprises."

[Davi Car]

07:47 AM on 10/26/2011

Yeah. There seems to be some kind of collusion to make the public think that "small business" refers to what you correctly call "micro enterprises". Most likely that is because if one defines small business in the way it is defined by the government, it is clear that the average person has very, very little chance of ever owning such a business. Small business owners belong, for the most part, to the 1%. Using the code word "small business", government can speak about and to the elite, while the great unwashed can imagine they might be one of those small business owners someday, if only they work hard and live right.

[Joni Halvorson]

09:42 PM on 10/25/2011

Jobs jobs jobs. That's where the money will come from.

[mikep]

11:57 PM on 10/25/2011

Yep. And single payer health care, single payer health care, single payer health care is what will create them. Speaking as a small business owner there's simply nothing more important.

[atexasdem]

03:28 AM on 10/26/2011

Every small business owner I've ever known would love to be able to offer benefits like health insurance to their employees but they just can't afford it. Unless you have hundreds of employees or more your just not going to get a break. They lose good employees all the time because a child, a wife, etc gets sick and the employee has to get health insurance. They go to work for a big company because of it.
In every other developed nation in the world that is not an issue. Health insurance at some level is covered by the government and paid through taxes. Businesses don't have to worry about it. From Whan's noodle shop to Toyota heath care is a non issue. Every single developed nation in the world has at some level national health care. Is every single developed nation in the world wrong and we are right? Out of all the democracies in Europe and Asia are we the only ones who know what we're doing?

[Davi Car]

07:48 AM on 10/26/2011

I've actually got a printing press, and it has been a great source of money.

(That is a joke. Feds, please do not come busting my door down.)

[onlyaquarterdelusional]

09:35 PM on 10/25/2011

"Small Businesses Want Fewer Regulations, More Customers "...Fewer regulations? Baloney. We need customers with cash to spend. Removing regulations per se brought about our current cash shortage. Supply side economics is a failure and everything the Republicans have been selling is false. If you need any more proof you haven't been paying attention.

[atexasdem]

03:41 AM on 10/26/2011

Regulations are not the small business killers though it is the Republican mantra. Regulations effect your competitor just like they effect you. Regulations effecting any industry tend to eliminate the crooks and fly by nights from those trying to do it right. Regulations can actually even the playing field. Let's use a typical small business with regulations, a restaurant. Most restaurants are after all small businesses. Would you eliminate health regulations? Would you eliminate government inspectors? Would you eliminate sanitation requirements? A restaurant could save a lot of money if they didn't have to worry about government food and sanitation inspectors after all. But they do. They ALL do.
Every restaurant has to follow the identical sanitation regulations. This is just one simple example I know but it applies to all businesses. It's like baseball. If you eliminate the umpires and rule book, if you eliminate the penalties only the teams that cheated would ever win a game. You must have a level playing field where the rules are the same for everyone. In business or in Baseball.

[Trepasky]

08:52 PM on 10/25/2011

Small business have noted lack of demand as the biggest obstacle to hiring.

Taxes and regulations are issues but would not prevent them from making a profit if they had customers.

Supply side folks sould be creating customers about now. I wonder how supply side economics does that? Magical thinking hasn't worked, tax cuts for the wealthy sure didn't do much and corporate welfare, loopholes, and such haven't either. WHat is left to try? Maybe having the GOV fund some 'public works' projects. That of course would be bad as it denies supply side principles and just might create demand..

[Peter Combs]

11:14 PM on 10/25/2011

I would urge you to take the time to READ Obama's Jobs PLan...its a little over 150 pages...packed with government double speak. My attorney read it, he said it woudl take several years to implement any of the job contracts..the paper work and compliance requirments will take 2 years. EVen Harry Reaid knows this and is why he's not a big fan of the Bill....

In all seriousness..read it, and then imagine the log jams of paper it will create.

[atexasdem]

03:51 AM on 10/26/2011

Then let's all just sit on our thumbs or maybe follow the Perry plan. We'll all have a giant revival and wait on God to save us. I say when your in trouble and drowning, doing absolutely nothing is the worse thing to do. That seems to be the republican solution. I'll be the first to admit that many of the Democratic plans are not perfect. I bought a puppy one time and it wasn't perfect either. He piddled all over the house. I worked with him though and in time he was the best dog I ever owned. We can fix imperfection. We can make things better. What we can't do is doing nothing. That's the republican plan, do nothing. If I'd waited on God or done nothing that dog would still be piddling all over the house. Instead I did something and it turned out pretty good.

[Trepasky]

09:42 AM on 10/26/2011

What are our alternatives?

DO we wait for some magic to appear or work our way through this economic mess we are in.