New Wells Fargo/Gallup Survey: Majority of Small Business Owners Struggle to Offer Employees Healthcare
March 16 2005 - 8:00AM
PR Newswire (US)
New Wells Fargo/Gallup Survey: Majority of Small Business Owners
Struggle to Offer Employees Healthcare Slight Increase in Index
Score Signifies Optimism, However, Lack of Business, Cash Flow and
Healthcare Still Critical Issues for Business Owners SAN FRANCISCO,
March 16 /PRNewswire-FirstCall/ -- Affordable healthcare remains a
significant issue for small business owners, according to the
latest Wells Fargo/Gallup Small Business Index. Three in four small
business owners are dissatisfied with the healthcare system in the
United States today, and say it needs either major changes or a
complete overhaul. Additionally, seventy-one percent of small
business owners surveyed in Q4 2004 cited this as a critical
priority for Congress and the President to address. While the
number of small business owners offering employee healthcare
coverage increased from 2003 to 2004, more than fifty percent still
do not provide healthcare for their employees. Of those, twenty-two
percent also do not have personal health insurance. With the number
of U.S. small businesses estimated at well over 20 million, this
means that approximately three million business owners are not
covered for major medical emergencies. "We want to provide our
employees with a sense of security for their well-being," said Ruth
Lopez Novodor, Co-CEO of Beverly Oncology & Imaging Medical
Group. "Without more options for providing reasonably-priced
healthcare, many business owners risk losing our most valuable
resources -- our employees. This puts the future success of our
businesses at risk." Six in ten small business owners surveyed who
do not provide health insurance to their employees said they would
be more inclined to do so if government incentives were available.
Twenty-three percent have curtailed hiring and twenty-seven percent
have cut back on non-capital investments due to rising healthcare
costs. "Though small business owners remain optimistic about their
future business success, these healthcare findings illustrate the
challenges faced by small business owners," said Rebecca
Macieira-Kaufmann, small business segment manager for Wells Fargo.
"The cost of healthcare is a major concern, and these findings show
the need for solutions that allow more small business owners to be
able to provide health insurance for their employees." The Index
score increased seven points, from 99 in Q3 2004 to 106 in Q4 2004.
Despite a slight increase in overall optimism, business owners
still cite lack of business, financial resources/cash flow, and
health care costs as the most important problems facing their
companies. These issues have consistently been among the most
pressing according to business owners since the first Index results
were tracked in September of 2003. The goods sector, traditionally
most susceptible to change, saw the largest sector increase with a
57-point Index gain from Q3 to Q4 2004. All other sectors showed
little change from the previous quarter. Regionally, the West and
East regions both showed a significant decline (21 and 13 points
respectively), while the Midwest and South both rose over 20
points. The Midwest and South scores are most likely related to the
increase in the goods sector. The Index tracks six key measures for
both current conditions and future expectations as reported by
small business owners: current financial situation, revenues, cash
flow, capital spending, number of jobs, and credit availability.
About Wells Fargo Wells Fargo & Company is a diversified
financial services company with $428 billion in assets, providing
banking, insurance, investments, mortgage and consumer finance to
more than 23 million customers from more than 6,000 stores and the
internet (wellsfargo.com) across North America and elsewhere
internationally. Wells Fargo Bank, N.A. is the only "Aaa"- rated
bank in the United States. Providing financial products and
services to more than one million businesses with annual sales up
to $20 million in all 50 states, Puerto Rico and Canada, Wells
Fargo is the #1 lender to small businesses in the United States in
total dollar volume according to the most recent CRA data (2003).
The second largest national SBA lender in dollars, Wells Fargo is
an SBA Preferred Lender in 28 states, and originated 3,555 loans
for $495 million in 2004. Wells Fargo has also been ranked the
number one SBA 504 lender nationally for the last two years. Its
targeted business services programs provide outreach and education
to women, African American, Latino, and Asian business owners about
financial services. Since 1995, Wells Fargo has loaned more than
$23 billion to women and minority business owners. About the Gallup
Organization For more than 60 years, the Gallup Organization has
been a recognized leader in the measurement and analysis of
people's attitudes, opinions and behavior. While best known for the
Gallup Poll, founded in 1935, Gallup's current activities consist
largely of providing marketing and management research, advisory
services and education to the world's largest corporations and
institutions. DATASOURCE: Wells Fargo & Company CONTACT: Sarah
Pew of Wells Fargo & Company, +1-415-396-0866, or Web site:
http://www.wellsfargo.com/
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