his month’s Small Business Sentiment Survey (SBSS), conducted by Angrisani Turnarounds, LLC, with data provided by Toluna, Inc., demonstrated a small—but fragile—improvement in small business owners’ attitude toward the economy.
Fifty-nine percent of small business owners surveyed said they had no plans to open their wallets anytime soon for capital expenditures, while last month 62.7 percent said they were holding off on capital purchases. Additionally, 70 percent of those surveyed said they were not planning to hire full-time employees in the foreseeable future, as compared to 80.1 percent last month. Despite slight improvement over last month, the survey’s newest figures still compare poorly with the baseline from the October 2009 survey, when 52 percent of SBSS respondents said they were disinclined to hire new full-time employees.
Has the deficit replaced health care as the new threat to Small Business?
According to Al Angrisani, founder and CEO of Angrisani Turnarounds and former U.S. Assistant Secretary of Labor under President Reagan, one new issue could be adding to the risk aversion business owners have expressed in recent SBSS surveys. A full 72 percent of small business owners surveyed said they were very concerned or extremely concerned about the massive federal budget deficit—which is forecasted to be $1.6 trillion for the current year, and had reached $430.69 billion through January—and the high taxes certain to follow in its wake.
“Small business owners are starting to look down the road at the huge deficit and heavy tax load sure to land on their shoulders,” he says. “So, while business owners have begun to feel slightly more positive about the economy and their businesses, deficit and new tax worries may be making them reluctant to hire full-time employees.”
Angrisani goes on to say that the deficit and accompanying taxes seem to have bumped health care reform from the top of the list of concerns for Small Business. “When we asked business owners to choose the biggest threat to their business, the highest percentage—23.5 percent—chose rising taxes, edging out health insurance costs by two percent. It’s clear this is becoming the big issue of the day.”
About the Small Business Sentiment Survey
Angrisani Turnarounds, LLC, commissioned Toluna, Inc., to conduct an online survey of small business owners. The survey, which used a representative sample of 200 owners of businesses with less than 100 employees from various industries and regions, was designed to assess the mood of small business owners. It also asked them to rate those issues presenting the greatest risk to their businesses and their general feeling about the health of their businesses.
About Angrisani Turnarounds
Building on his decades of experience in the turnaround industry, Al Angrisani has established Angrisani Turnarounds, LLC, as a vehicle for helping troubled companies overcome the challenges that have weighed them down and diminished shareholder value.
With the proven Angrisani Hierarchy of Value Creation Model (AHVCM) at its heart, the company’s mission is to work closely with Boards of Directors to transform troubled and under-performing companies (TUCs) into high-performing, innovative businesses that create new wealth for shareholders.
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