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|New Study on Impediments to Economy|
|News Releases - Business & Economy|
|Written by Cynthia Magnuson|
|Tuesday, 22 November 2011 16:24|
New Study Finds Economic and Political Uncertainty Top Impediments to Small-Business Growth
WASHINGTON, D.C., Nov. 22, 2011 — A new study examining impediments to growth in the small-business sector reveals that 72 percent of small-business owners would like to expand by adding employees within the next five years, but various impediments are currently standing in their way.
According to Growth – External Factors, a report prepared by the National Federation of Independent Business (NFIB) Research Foundation, uncertainty and weak sales are the two primary impediments to small-business growth.
“There is no question that small businesses are responsible for a significant portion of the job creation in our economy,” said William J. Dennis, report author and senior fellow at the NFIB Research Foundation. “Their growth and success is often contingent upon a litany of factors beyond their control – but within the purview of policy-makers in Washington. Impediments to growth may not be easily overcome, but if we are ever to bridge the gap between desired and actual growth, government officials must look at the problems small businesses face. Understanding the challenges should help with the formulation of policies that would help them to thrive.”
The study found that business uncertainty and weak sales—identified as the two primary impediments to small-business growth— are currently limiting the ability of many owners to expand. While economic concerns rank high in the minds of owners, a large number of small businesses also report that uncertainty is a significant factor in making business decisions. Not surprisingly, the single most important indicator that would renew small-business owner confidence in business conditions is increased sales in their businesses. This is a fact supported by NFIB’s monthly Small-Business Optimism Index report, which has identified poor sales as the top business concern for small firms for 16 quarters running.
Other notable survey findings include:
The latest NFIB Small Business Poll, Growth – External Impediments, is available at http://www.nfib.com/
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