Small business owners are combating regulatory challenges and the fight for talent, both of which are hurting their companies and could affect how they vote in 2012, finds The Hartford's Small Business Success Study.
While the unemployment rate remains high, locating qualified talent is difficult for 59 percent of respondents. Another 68 percent say business is a voting factor, especially if specific policies directly impact their companies. Despite the hard reality, 70 percent of respondents feel successful.
"We developed this comprehensive study of the nation's small businesses to learn how well equipped they are to maximize their future success," says Liam E. McGee, chairman, president, and CEO of The Hartford. "Small businesses are the U.S. economy's primary job creators, and a powerful force – not just economically but also behaviorally. They carry on the tradition of the driven, confident, creative people who built America. From the , we learned that most of them expect to be successful in the next two years, even as they face challenging conditions. Our hope is that the U.S. will foster an environment that is more hospitable to small businesses. Our country should be celebrating and liberating entrepreneurs, not burdening them."
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Respondents are optimistic in a tough economy because profits don't necessarily define success, with 82 percent of respondents saying they value doing something they feel passionate about and enjoy. While 77 percent of respondents admit increasing profitability year over year is important, only 18 percent cite this as the most important factor in identifying success.
The survey also reveals that 81 percent of respondents hope to stay deeply involved in their business operations, and 90 percent of respondents say they enjoy entrepreneurship. Attaining a comfortable lifestyle for themselves is important to 79 percent of respondents, and 72 percent of respondents say a comfortable lifestyle for their employees is important.
Growth, however, is not a common goal among all respondents, the survey finds. Although 52 percent of respondents believe they are growth-oriented, 48 percent of respondents say they are maintenance-oriented and comfortable with current operations.
Regardless of today's economy, 51 percent of respondents report feeling they will be successful in the next two years, with only 6 percent respondents predicting they won't find success in that timeframe. Fifty-seven percent of respondents say the economy has affected their businesses, and 34 percent of respondents say being approved for a loan or other capital is challenging.
Respondents also say dealing with government regulations is difficult, as it results in more administrative and accounting burdens, the survey shows. In fact, 37 percent of respondents believe economic constraints, including government rules, regulations and taxes, are the primary reason they are being held back, and uncertainty about how public policy could stunt business growth is obstructing their ability to plan for the future. Other hurdles are increasing energy and fuel costs as well as a lack of customers.
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