More than 50 percent of small businesses report they face three dangers – tax regulations, healthcare costs and poor disaster planning – according to an insurance company study. Nearly 33 percent cite government regulations as a salient obstacle to their success.
However, most respondents said back in 2011 they’re optimistic about revenue growth and hiring workers.
That’s according to a nationwide study by the Travelers Institute, which is the Washington, D.C. public-policy arm of the Hartford-based Travelers Companies.
The organization embarked on a campaign.
That was to spotlight the public-policy issues that are perils to small businesspeople — as well as the solutions.
“Travelers is committed to being a constructive participant in the public policy dialogue with regard to important issues facing our industry,” wrote Jay Fishman, the Travelers chairman and CEO on the institute’s Web site.
“We hope to contribute to solutions on a wide range of issues that face our customers, our agents and brokers, and the communities we serve,” he added.
Conclusions from the small-business survey:
- More than 60 percent are over-burdened by tax-related issues, government compliance and mounting healthcare requirements
- Half of them cited health insurance
- 47 percent said licensing, permitting and inspection issues are an unnecessary weight
- 52 percent indicated government regulations depress small business
- More than half aren’t prepared for a disaster
More insights from the institute:
- Regulatory costs for small businesses are 36 percent greater per employee than big business
- Regulatory burdens — 33 percent of respondents cite the federal government; 34 percent for state and 16 percent for local or county
- Costs for coping with federal regulations – companies employing fewer than 20 workers spend $10,585 per employee per year but companies with 500 or more employees spend $7,755 per employee per year
- Tax compliance costs to small business – $18 billion annually
- The nation has 27.3 million small businesses
- 600,000 new businesses are started each year
- The tax code has four times more words than the Bible
The study included the opinions of 600 small-business owners, employing 50 or fewer people in 2011.
My sense: Travelers is on the right track, and is to be commended. Over-zealous government regulation is a threat to our collective political liberties, which is also a menace to our economic liberties. Let’s wish the institute luck, and remember we must all participate in the public-policy process.
From the Coach’s Corner, here are four resource links:
- 11 Strategies to Keep your Small Business Floating above Water
- How to Ease Debt-Collection Headaches
- Step-by-Step Solutions for a Company Turnaround
- 19 Tips to Protect Your Core Assets from a Disaster
“If you have ten thousand regulations you destroy all respect for the law.”
Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.