A survey conducted annually by Small Business California shows that lack of access to capital and delayed purchases are slowing the economic recovery in California.
Of the 2,721 small businesses that responded to the survey, 78% said they were “delaying purchases or other expenditures” to control costs while 64% said that dealing with access to capital should be a top or high priority of state lawmakers. Only 58% thought reducing taxes should be a top or high priority.
Scott Hauge, the founder of Small Business California, said, “Small businesses are the economic backbone of our state, and if they cannot get capital to expand and make purchases, the economy will not expand.” He went on to say, “Improving access to capital must be a top priority for any leader who wants to create jobs.”
Healthcare Remains a Major Issue
Healthcare remains an unresolved issue for most small businesses: 79% of the businesses that responded to the survey believe dealing with the availability and high cost of healthcare should be a top or high priority of lawmakers, more than any other issue addressed in this survey.
Of the businesses surveyed, 41% provide benefits to their employees. Small businesses are dealing with increased costs using a variety of methods, which include:
• Increasing deductible or co-pays 22%
• Increasing employee contribution 19%
• Reducing coverage 21%
• Dropping coverage 20%
• Absorbing additional costs 25%
Small Business California Board Member Ginnie Mistal said, “The time has come to reform our healthcare system. The costs are becoming unsustainable for small business owners.”
Of the respondents, 64% supported the creation of an exchange to provide health insurance access for small businesses.
The complete results of small business survey and results of past surveys maybe found on SB-Cal’s website. The survey was conducted on-line and was in the field from January 30, 2010 to March 1, 2010. 2,721 small businesses responded to the survey.
Small Business California represents the interests of small businesses. Its Board of Directors are leading advocates and represent thousands of small businesses through out the state. More information regarding Small Business California can be found at http://smallbusinesscalifornia.org.