Survey Shows Climate for Small Business Not Improving
Taxes, Regulation, and Red Tape Top Business Problems
(Washington, D.C.) – The NFIB Research Foundation has released its quarterly survey of nearly 11,000 small businesses nationwide, showing that the "optimism index" for these businesses has hardly changed in the last 3 months. The NFIB notes that capital spending remains mediocre, spending plans are weak, and inventories are too large – with more owners reporting sales trends deteriorating than improving. While there are positive signs as well – including more firms planning to increase employment and to make capital outlays – the overall result is one of little change. Respondents continue to identify government interference as the source of the most important small business problems. Specifically, taxes, regulation, and red tape continue to concern entrepreneurs more than poor sales, labor problems, competition, inflation, and other problems.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"America's small businesses are an important engine that expands employment in this nation. As startups and small businesses grow, they create opportunities for millions. Unfortunately, taxes and regulation continue to suppress growth and make it harder to expand in the future. That's no way to reduce unemployment and enable millions to build better futures.
Our elected officials need to consider the impact of taxes and regulation on small businesses. They should try to ensure a level playing field – not an uphill climb – for the entrepreneurs who create the cutting-edge companies of tomorrow. When small businesses fail due to government interference – as too many have been – they take down families and communities with them. That's a toll Washington must reduce."