Small Businesses See Growth In 2011

Small Businesses See Growth In 2011 March 6, 2011 http://www.SmallBusinessNewz.com Is the government hindering small business growth? Tell Us Here

Small Businesses See Growth In 2011 Mike Sachoff | Staff Writer Half of small business owners (50%) are optimistic about their chances for growth in 2011, according to a new survey released by Paychex. At the same time, nearly half (47%) report that recent government regulations have slowed or prevented growth. Tax changes (56 percent), healthcare reform (39 percent), and state regulations in response to budgetary challenges (25 percent) were cited as the top three regulatory issues most impacting small businesses. The research found that 61 percent of respondents have seen more government regulation over the past five years. When asked about what business issues "keep them up at night," uncertainty about the economy, the need to add customers and revenue, and concerns over cash flow were the most common responses. "After several extremely difficult years for small businesses, 2011 is shaping up as a year when indicators of progress and growth appear to be moving in the right direction for many categories of small business," said Martin Mucci, Paychex president and CEO. The Impact of IBM's Watson on Healthcare - Watch the Video! "While regulation clearly weighs heavily on the minds of small business owners, optimism for growth and plans for adding employees bode well for small businesses in particular and the U.S. economy in general." Respondents were also asked their opinions about employee benefits. Fifty-nine percent of small business owners said offering health insurance to be important, while 47 percent consider it important to offer retirement benefits. However, only 29 percent and 17 percent of all small business owners offer health insurance and 401(k) benefits, respectively. Among companies with 5 to 50 employees, 57 percent offer health insurance, with 13 percent planning to do so soon, while 39 percent offered 401(k) plans. "While concerns about cost likely serve as a barrier to offering benefits for small business owners, the costs may not necessarily be as burdensome as owners might think," said Mucci. "For example, we have found that by working closely with health insurance providers and our clients, we can develop health insurance programs that are affordable for small businesses and help them meet their goals of providing adequate coverage." Better Labor Laws Could Create 50,000 New Businesses Mike Sachoff | Staff Writer The U.S. Chamber of Commerce said today states could create nearly 750,00 jobs and 50,000 new businesses by streamlining employment regulations. The Chamber released a study, conducted by Seyfarth Shaw LLP and Navigant Economics, revealing that states with the largest burden of labor and employment regulation are missing opportunities to cut unemployment and create new business startups. The study shows that if each state were to improve their regulatory climates to the level discussed in the report, the effect would be equivalent to a one-time boost of 746,462 net new jobs nationwide. In addition, the rate of new business formation would increase by 12%, resulting in the creation of 51,590 new firms nationally each year. "Without cost to state governments or the federal government - or the taxpayers - states can take steps now to improve their economic conditions and begin to prime the pump of job creation and new business formation," said Lisa Rickard, president of the Workforce Freedom Initiative. "The goal of this study is to provide state policymakers with an objective view of how policies in their states compare with policies in other states, and perhaps more importantly, how reforms can accelerate economic growth." Based on the results of Seyfarth Shaw's survey, Navigant Economics developed an Employment Regulation Index (ERI) to sort the state into one of three tiers: good, fair, or poor, to reflect their overall regulatory environment. Fifteen states are in the "good" category, 20 in the "fair" category, and 15 in the "poor" category. "Governors across the country from both parties are looking at ways to encourage economic growth in their states, and reform of state labor and employment regulations could make an important contribution to returning the U.S. to a more rapid-growth trajectory," said Rickard. Discuss this article.

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