Small business survey shows mixed results

Back in May I cited a survey of over 6,000 small business owners done by the Kauffman Foundation and the business-to-business website Thumbtack.com, but they return to this page after completing a survey of over 6,000 of their members in conjunction with George Washington University. I frankly found the results of this recent poll somewhat surprising.

According to this survey, which was analyzed by GWU, more business owners have confidence in Barack Obama – he of “you didn’t build that” fame – than in Mitt Romney, who actually built a successful business from scratch. Overall, 39% of respondents believed Obama was more attuned to their interests while 32% selected Romney. The remaining 30% were unsure.

Yet on the signature issue Obama trumpets, a large plurality believed it were bad for business. Obamacare was roundly panned by business owners, with only 20% agreeing that it helps their business but 41% suggesting the opposite. Three out of 10 of those replying strongly disagreed that Obamacare was helping them. The partisan bent was strongest there, with 42% of Democrats believing Obamacare helps them but just 16% of independents and a measly 4% of Republicans.

In other issues, such as Obama’s so-called tax cuts and the Small Business Administration loan program, results were about even both ways – only Obamacare drew the ire of this group of small business professionals. It is worth mentioning, though, that the Obama tax cuts were found helpful by 56% of Democrats but just 9% of Republicans.

Because I was surprised by these seemingly conflicting results, I asked Thumbtack.com owner Sander Daniels about the partisan breakdown of those who answered, since it was one of two key elements missing from an otherwise fairly thorough breakdown. (I also don’t have the raw numbers from the 6,000-plus who returned surveys, but I suspect the number of those who replied was pretty slim in flyover country.) He informed me separately that the numbers were 32% Democrat, 28% Republican, and 40% who considered themselves independent politically.

Daniels also pointed out that a Gallup Poll taken earlier this year which showed 40% of Americans at large considered themselves independent. However, that contrasts with more recent data from Rasmussen which shows just 29% of Americans consider themselves independent. The Rasmussen data also gives the overall partisan breakdown as 38-33 in favor of Republicans, as opposed to Gallup’s data which showed a 31-27 Democratic edge. Gallup also pointed out that independents tended to lean more Republican than Democrat, which suggests to me this poll is slightly tilted toward the Democrats. Remember, the Thumbtack.com survey found 6,000 small business owners out of the nearly 6 million listed in recent Census data. The GWU anaylsis corrected somewhat for disproportionate representation by state, but I wouldn’t be awfully surprised if urban areas were over-sampled at the expense of rural states.

I also found it intriguing that Dr. David Rehr, who coordinated the study at GWU, assessed the survey results as showing, “Entrepreneurs are feeling squeezed by the tight lending environment and want their political leaders to curb the influence of money in politics.” The latter statement seems more projection on Rehr’s part, since the question he refers to deals with the broader area of ethics, honesty, and corruption in government. I could just as easily say those are caused by too much power and influence over people from government rather than the money required to be elected, and I think I would be closer to the intent of what these business owners answered.

Another omission by the GWU summary was the group’s approval ratings of both President Obama and Mitt Romney. The question is asked in the survey but not revealed in either summary.

While there is a blizzard of facts and figures from the survey, perhaps the most interesting contradiction is this. Out of twelve issues ranked in importance for choosing the President, taxes were second-to-last, topping only foreign policy. (That may change now after recent events.) Less than 3% considered that the most important issue, with even social/moral issues drawing about 6 percent. (No surprise: Economy/jobs topped the list with 40 percent.)

But when asked how important a laundry list of issues were to their business, the number one “very important” answer was “tax rates and tax-related regulations” with 52 percent; it even beat out health care at 50 percent. Something about that doesn’t jibe, particularly when Barack Obama, the king of crony capitalism – in charge of a government whose regulations cost upwards of $1.75 trillion to the economy – is still thought of as better for business by nearly 2 out of 5 business owners.

I’ll bet they’re the first to fail when he’s re-elected.

Author: Michael

When I'm away, I can run the site from my cel.

One thought on “Small business survey shows mixed results”

  1. While the Bradley Effect may prevent small business owners from “dissing” President Obama directly, it probably wouldn’t affect their reaction to Obamacare. Many perceive it as a clear and present danger.

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