New research from the National Federation of Independent Business (NFIB), sponsored by Wells Fargo, says the biggest problem is the cost of doing business
WASHINGTON, June 9 /PRNewswire-FirstCall/ -- New research released todayfrom the National Federation of Independent Business (NFIB), sponsored byWells Fargo (NYSE: WFC), shows the top concerns among small business ownersare business costs, particularly those that are difficult to control such ashealth insurance costs, energy costs and inflation. The survey results arefrom the seventh edition of Small-Business Problems and Priorities survey,based on 3,530 small business owner responses to a mail survey circulated inthe first three months of this year.
The study is conducted every four years. Respondents rated each of 75possible business problems on a scale of 1 to 7, with 1 indicating a 'criticalproblem' and 7 indicating 'not a problem.' Problems are ranked according tothe average rating received. The 75 business problems evaluated are organizedinto 10 problem clusters with each cluster containing all of the problemsrelating 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-yearreign as the number one problem for small business owners. More than 56percent say it is a 'critical problem.' Other cost issues in the top 10include the cost of fuels and electricity, supplies, inventories and worker'scompensation insurance.
'For four years, the economy provided a good, stable foundation for smallbusiness owners to do business, but as it started to take a negative turn overthe last several months, they felt the effects of rising costs of doingbusiness as reflected by these results,' said Bruce D. Phillips, Senior Fellowat the NFIB Research Foundation and co-author of the report with NFIB PolicyAnalyst Holly Wade. 'As the economic outcome remains uncertain, small businessowners are searching for innovative ways to reduce expenses and increasesales.'
The remaining top 10 problems fall into the 'tax' cluster, including:federal taxes on business income, property tax (real, inventory or personalproperty), 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 morechallenged by the costs of health insurance and the complexity of taxes,' saidRebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo'ssmall business segment.
