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Cost of Health Care and Lack of Access to Capital Are Greatest Concerns
America’s small businesses are facing challenging times. Increasing costs are forcing small business owners to drop health care coverage and embrace sweeping health care reform, while difficulty accessing adequate capital is slowing business growth.
“Small-business owners’ concerns about the increasing cost of health insurance and a lack of access to capital are wake up calls for policy makers in Washington,” NSBA President Todd McCracken said. “Business owners are now willing to embrace health care reforms to a degree that will surprise many people.” After unease about the economy’s future (42 percent), the cost of health insurance (39 percent) and the lack of available capital (31 percent) topped small business concerns.
Small businesses also are finding it more difficult to obtain adequate financing. Ten years ago, 24 percent of business owners reported that they were not able to obtain adequate funding, mirroring the NSBA poll results in 2000. But, in 2007, 33 percent (a nine-percent increase) cited this concern. The smallest businesses, those with four or fewer employees, are most likely to turn to credit cards to fund their operations. Most businesses using a credit card to fund their businesses (71 percent) carry a balance from month to month. And, of those businesses, 36 percent carry a balance in excess of $10,000. Businesses unable to access capital report difficulty growing their business and hiring additional employees.
Survey conducted by national polling firm Public Opinion Strategies. For more information, visit www.nsba.biz.
Previously published in the October 2007 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com
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