Now that we have survived the end of the Mayan world and are heading towards the end of the fiscal world and over the fiscal cliff I continue to think about the potential impact to small business owners. A recent post by Catherine Clifford makes several good points. In her blog “Business Owners Want Fiscal-Cliff Deal for Customers” ( http://www.entrepreneur.com/blog/225339) she reminds us that:
Ninety-seven percent of small businesses make less than $250,000, roughly equivalent to 32 out of 33 small businesses, says Sam Blair, the Main Street Alliance network director. To raise the threshold to $1 million from $250,000 would help only one out of 33 small businesses, and those businesses that might be helped are of the “Donald Trump” variety, Blair says.
As Obama and Boehner battle over what the threshold should be for extending tax cuts, small business owners are often used as chess pieces in the debate. A common argument is that the government needs to extend tax cuts for wealthier individuals in order to protect small business owners, the job generators of this country. Not all small business agree.
“As a small-business person, I do not make many of my economic decisions based upon tax policy. When I look at decisions to expand my business, if I look to hire new people, the reason I make the decision to do that is based upon what the economic climate is going to be and the economic activity of my industry,” said Rowen. “Most small-business people that I know are in the same situation that I am in”.
In the short term business owners want a growing economy with consumers who have money to spend but over the longer term we also need to cut enough spending to start reducing our national debt. Probably most of all we need the playing field defined and soon so that we can adjust our plans, spending and investing and focus on growing our business again. The worst thing for business is continued uncertainty.