Gallup: 61% of Small Business ‘Worried’ Over Healthcare Costs -- 30% Not Hiring, Fear Going Out of Business
(CNSNews.com) -- Sixty-one percent of U.S. small business owners said they were “worried about the potential cost of healthcare” and 56 percent said they were “worried about new government regulations,” according to the Wells Fargo/Gallup small business index released on Jan. 31, which also showed that 30 percent of small business owners are not hiring and fear going out of business within a year.
“At the bottom of the list, but still at a surprisingly high level, 30% of owners say they are not hiring because they are worried they may no longer be in business in 12 months,” according to Gallup’s index summary. “This is up from 24% who had the same worry in January 2012.”
Over the last 12 months, there have been more small business owners in the United States who reported they let workers go more than they hired new ones.
Although business owners cited usual reasons for not hiring more, such as not needing new personnel or sales not justifying new employees, owners also cited other reasons such as healthcare and government regulations.
More small business owners report intentions to hire employees over the next 12 months. However, 17 percent say they expect to add more jobs to their businesses during the same time period.
Gallup said the reasons given for less hiring, such as healthcare and government regulations, are “troublesome” and have negative implications for the U.S. economy.
“Finally, the fact that so many owners say worries about such things as potential healthcare costs and potential new government regulations are holding back hiring is troublesome for the job market outlook,” the index summary said. “Still, probably the most worrisome response is that 30% of small business owners fear they may not be in business 12 months from now.”
The survey was conducted between Jan. 7-11, 2013 with a random sample of 601 small business owners.