Q3 Small Business Outlook Survey

The October 2012 Q3 Small Business Survey is the seventh consecutive small business survey released by the U.S. Chamber of Commerce. The quarterly surveys are designed to track the small business community’s outlook on their business, the local economy, and the national economy over time. Small business owners are polled nation-wide, and respondents include U.S. Chamber members and non-members.  View all the Small Business Surveys here.

Quarter 3
Small Business Outlook Survey - October 2012

Key Findings
Prolonged Uncertainty is Impacting Hiring:

• Uncertainty is at its highest level since last year; 49% of small businesses are not sure if their business’s best days are ahead or behind them.
  
  
  
• 84% say they are pessimistic about their future operations in light of recent unemployment numbers and low workforce participation.
• Only 17% of small businesses surveyed expect to add staff in 2013, reflecting a steady downward trend over the course of the year.

Impending “Fiscal Cliff” Adding to Economic Fears:

• There was an increase in intensity among those who are concerned about the fiscal cliff. 72% say they are very concerned, which is significantly higher than the 65% reported last quarter.
• 62% believe that the expiration of 2001 and 2003 tax rates and other business provisions, coupled with sequestration cuts, will have a significant negative impact on their business’s growth, up from 59% in the previous quarter. In total, 89% believe these tax increases will negatively impact their operations.
  
  
  

Leadership in Washington Affects the Small Business Outlook:

• 76% of small businesses say the health care bill makes it harder to hire more employees.
• 79% of small businesses surveyed feel that the Administration is not doing enough to keep energy prices low, and 76% say that higher energy prices threaten their business.
  
  

Business Community Highly Motivated to Vote in November:

• Small business owners are motivated to vote in this election: 97% are motivated and 92% say they are very motivated.
• There is still overwhelming support among small businesses for candidates who support free enterprise, with 97% citing it as a factor in how they vote.