Study Shows Biggest Problems Facing Small Business Owners
AniMatson
06/18/2008
New research from the National Federation of Independent Business,
sponsored by Wells Fargo, says the biggest problem is the cost of
doing business
Contact:
Wells Fargo NFIB
Sarah Pew Mike Diegel
415-396-0866 202-314-2004
WASHINGTON, D.C.--New research released today from the National
Federation of Independent Business, sponsored by Wells Fargo (NYSE:
WFC), shows the top concerns among small business owners are business
costs, particularly those that are difficult to control such as health
insurance costs, energy costs and inflation. The survey results are
from the seventh edition of Small Business Problems and Priorities
survey, based on 3,530 small business owner responses to a mail survey
circulated in the first three months of this year.
The study is conducted every four years. Respondents rated each of 75
possible business problems on a scale of 1 to 7, with 1 indicating a
"critical" problem and 7 indicating "not a problem." Problems are
ranked according to the average rating received. The 75 business
problems evaluated are organized into 10 problem clusters with each
cluster containing all of the problems relating to a single topic.
Half of the top 10 problems worrying small business owners appear in
the "costs" cluster, with the cost of health insurance continuing its
20-year reign as the number one problem for small business owners.
More than 56 percent say it is a "critical problem." Other cost issues
in the top 10 include the cost of fuels and electricity, supplies,
inventories and worker's compensation insurance.
"For four years, the economy provided a good, stable foundation for
small business owners to do business, but as it started to take a
negative turn over the last several months, they felt the effects of
rising costs of doing business as reflected by these results," said
Bruce D. Phillips, senior fellow at the NFIB Research Foundation and
co-author of the report with NFIB Policy Analyst Holly Wade. "As the
economic outcome remains uncertain, small business owners are
searching for innovative ways to reduce expenses and increase sales."
The remaining top 10 problems fall into the "tax" cluster, including:
federal taxes on business income, property tax (real, inventory or
personal property), tax complexity and state taxes on business income.
Tax complexity, a new problem on this year's survey, ranks fifth on
the survey and is a "critical" problem for 23 percent of business
owners.
"As the economic downturn persists, small business owners are even
more challenged by the costs of health insurance and the complexity of
taxes," said Rebecca Macieira-Kaufmann, executive vice president and
head of Wells Fargo's small business segment. "At Wells Fargo we
believe it is vitally important to sponsor this research to promote a
better understanding of the issues confronting small business owners."
Copies of the survey are available to members of the media upon
request. For more information about the latest Small Business Problems
and Priorities, contact NFIB media department at 202-554-9000.
About NFIB
NFIB is the nation's leading small business association, with offices
in Washington, D.C., and all 50 state capitals. Founded in 1943 as a
nonprofit, nonpartisan organization, NFIB gives small and independent
business owners a voice in shaping the public policy issues that
affect their businesses. NFIB's powerful network of grassroots
activists sends their views directly to state and federal lawmakers
through our unique member-only ballot, thus playing a critical role in
supporting America's free enterprise system.
NFIB's mission is to promote and protect the right of our members to
own, operate and grow their businesses. More information about NFIB is
available online at www.NFIB.com/newsroom.
About Wells Fargo
Wells Fargo & Company is a diversified financial services company with
$595 billion in assets, providing banking, insurance, investments,
mortgage and consumer finance through almost 6,000 stores and the
internet (wellsfargo.com) across North America and internationally.
Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only
two banks worldwide, to have the highest credit rating from both
Moody's Investors Service, "Aaa," and Standard & Poor's Ratings
Services, "AAA."
Wells Fargo is America's #1 small business lender in total dollar
volume according to the most recent Community Reinvestment Act data
(2006) and the #1 SBA 7a bank lender in total dollar volume. Wells
Fargo has loaned close to $36 billion to women, African American,
Latino and Asian business owners since 1995. For more information,
speak with a Wells Fargo banker, visit wellsfargo.com/biz or call the
National Business Banking Center at 1-800-CALL-WELLS.