Small Business Owners Say Healthcare System Needs to Change
September 12 2007 - 8:30AM
PR Newswire (US)
Latest Wells Fargo/Gallup survey: small business owners believe
health insurance can help attract, retain employees ... but current
system flawed SAN FRANCISCO, Sept. 12 /PRNewswire-FirstCall/ -- The
state of the current U.S. healthcare system remains a primary
concern for small business owners, according to the latest Wells
Fargo/Gallup Small Business Index. Almost nine out of 10 small
business owners surveyed (86 percent) said the current healthcare
system is in need of change, with six out of 10 saying a "a
complete overhaul" (59 percent) is in order. "As a small business
owner, the success of my practice depends on the health and overall
success of my employees," said Dr. Vacharee S. Peterson of Peterson
& Peterson D.D.S. "It's important that I am able to take care
of my employees and provide them with the essential resources and
benefits that will keep them healthy and in the office, and
ultimately, keep my practice thriving." Small business owners were
asked what effect adequate health insurance has on a company's
employees. More than three-quarters (84 percent) agreed that
adequate coverage attracts the best qualified employees, and nearly
the same amount of respondents (81 percent) agreed that it improves
employee loyalty. Eighty-three percent believe it reduces an
employee's likelihood to leave a company. The Index found that over
half of small business owners (55 percent) do not offer any health
insurance to their employees, citing high cost as the number one
reason (45 percent). Of these business owners, 55 percent said they
would be "more likely" to offer such benefits if the federal
government provided some financial incentives for this coverage.
"The majority of small business owners recognize the benefits of
offering affordable healthcare coverage to their employees, but
many feel they cannot afford to do so," said Rebecca
Macieira-Kaufmann, executive vice president and head of Wells
Fargo's small business segment. "A third of small business owners
are cutting back on non-capital investments so they can provide
healthcare for their employees. For several years health insurance
has been a major concern for small business owners, and its impact
is significant." About the Small Business Index Since Q3 2003, the
quarterly Wells Fargo/Gallup Small Business Index has surveyed
small business owners on their current and future perceptions of
their business environment relating to their business financial
situation. The Index consists of two dimensions: 1) Owners' rating
of the current situation of their businesses and, 2) Owners' rating
of how they expect their businesses to perform over the next 12
months. An Index score of zero reflects that an equal number of
small business owners are optimistic and pessimistic about their
companies' situation. Results are based on telephone interviews
with 603 small business owners nationwide conducted July 12 - 23,
2007. The margin of sampling error is +/- 4 percentage points.
About Wells Fargo Wells Fargo & Company is a diversified
financial services company with $540 billion in assets, providing
banking, insurance, investments, mortgage and consumer finance
through almost 6,000 stores and the internet (wellsfargo.com)
across North America and internationally. Wells Fargo Bank, N.A. is
the only bank in the U.S., and one of only two banks worldwide, to
have the highest credit rating from both Moody's Investors Service,
"Aaa," and Standard & Poor's Ratings Services, "AAA." Providing
financial products and services to more than one and a half million
businesses with annual sales up to $20 million in all 50 states,
Puerto Rico and Canada. Wells Fargo is America's #1 small business
lender in total dollar volume according to the most recent
Community Reinvestment Act (CRA) data (2005). The second largest
national Small Business Administration (SBA) lender in dollars,
Wells Fargo is an SBA Preferred Lender in 28 states and the
District of Columbia, and originated 4,937 loans for $578 million
in 2006. Its diverse 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 $33 billion to women and diverse business
owners. For more information, please visit
http://www.wellsfargo.com/biz. 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, +1-415-396-0866, Web site: http://www.wellsfargo.com/
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