Small Business Owners feel that the issues they were faced with in 2012 are going to be the same in 2013. There is a lot of uncertainty we are faced with in 2013; taxes and health care are at the top of the “Worry List.”
The economy is of no moral support for small business owners. The Federal Reserve only predicts a 3% increase in 2013, which is better than the 1.7% we saw for the first 3 quarters of 2012, but it is no where near robust.
- Taxes: Even if Congress reaches an agreement over what is called the fiscal cliff, small business owners will still lack certainty in their financial future. Sole proprietors, owners and partners include their business income on their individual Form 1040 returns; this means that their company is effected by personal tax rates which are likely to be higher than corporate taxes.
- Healthcare: The New Year will only provide a small dose of certainty for small business owners. The new laws are complicated and woven around hoops that one must jump through in order to even begin to benefit. Knowledge is crucial for the small business owner when it comes to the new healthcare laws.
- Lending: The banks are shedding no hope on small business lending in 2013. It can all be traced back to 2008 with the collapse of the mortgage market in 2008.
- Onshoring: Positive trend! Goods that were once offshore are now being purchased and manufactured within the United States. Apple Inc stated in November 2012 that they were moving the building of their Mac computers from China to the United States. Even though labor is cheaper offshore, the price of fuel has surpassed even a break even point- a main reason for the increase of onshoring.
- Skilled Worker Shortage: Because of change in technology, some business owners are finding it hard to find qualified people to work in 2013. Many community colleges are offering classes and training in specific fields to help and void the gap.
Scott Shane, a professor of entrepreneurship at Case Western Reserve University, said “Uncertainty is the bane of every small business. Their only natural response is to pull in their horns and slow down.”
*J. Rosenburg – Associated Press