#1 Election Issue for Small Business Owners?
October 26 2004 - 9:30AM
PR Newswire (US)
#1 Election Issue for Small Business Owners? New Wells Fargo/Gallup
Survey Says It's Healthcare Costs by a Wide Margin SAN FRANCISCO,
Oct. 26 /PRNewswire-FirstCall/ -- More than eight of every ten
small business owners -- in a recent Wells Fargo/Gallup Survey --
say they believe healthcare costs are hurting the business climate.
According to the survey, 85% said healthcare costs were hurting the
business climate (68% responded they were "hurting a lot").
"Optimism remains steady, but these latest findings show how much
election issues are weighing on the minds of U.S. small business
owners," said Rebecca Macieira-Kaufmann, small business segment
manager for Wells Fargo. "Small business owners are personally
concerned about issues like terrorism and the situation in Iraq,
but when it comes to their businesses, they are most concerned
about healthcare costs and outsourcing -- issues that directly
impact their ability to build and grow their businesses. This
illustrates the sophistication and drive of U.S. small business
owners, who remain focused regardless of the obstacles placed in
front of them." Seventy-eight percent of business owners surveyed
said they believe the election will have an impact on the business
climate in the country. Respondents also cited the price of energy
(88%) and the outsourcing of jobs to foreign countries (66%) as the
next most pressing issues. Other issues cited include the quality
of U.S. elementary and secondary education (59%), the war in Iraq
(57%), the federal budget deficit (56%), the war on terrorism
(51%), uncertainty over the outcome of the presidential election
(50%), general economic conditions in the country (48%), inflation
(45%), and interest rates (13%). "As a small business owner, I
share the same election concerns as the general voting public. But
I'm also very focused on the issues that impact my ability to run a
business," said Cynthia Cohen, founder and president of Strategic
Mindshare, a Miami and Silicon Valley-based strategic consulting
firm. "In a sense -- small business owner concerns are two-fold:
those that affect the business climate and how we operate, and
those that impact our lives and the lives of our families." The
Index, which measures business confidence and overall market
conditions as seen by small business owners, stayed virtually the
same despite significant regional variations. The Midwest score
stayed at 78, significantly lower than the other regions. The West
had the largest increase (up to 110 from 92), the South had the
largest decline (down to 101 from 128), and the East score rose
slightly (from 104 to 109). Scores also varied among business
types. The Index score for the Goods Sector, dropped to 52 from
last quarter's previous high of 117. This could indicate a possible
correlation between the lower score and small business owners
concern about outsourcing. The score for the Service Sector jumped
from 99 to 115 over the last quarter, while the Trade Sector score
also rose from 86 to 97. Additionally, there was a significant
change in Index scores for small businesses of differing sizes.
Businesses with $50K-$250K in annual revenues scored an 82 on the
most recent Index (down from 99), significantly lower than the
Index score of 131 for businesses $250K - $20M in annual revenues
(up from 102). The previous quarter, both the smaller and larger
small businesses reflected the same levels of optimism. According
to the Q3 2004 Index, which covers July - September, 2004, 55% of
small business owners surveyed (55%) are more enthusiastic about
the election this year than in past years. Also, 60% say the
current level of interest rates is helping, rather than hurting,
the business climate. 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 $422 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 2002 CRA data. 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. Speer & Associates
rated Wells Fargo's online services #1 for small business and for
consumers (2003). 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 $22 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: Matt Hurwitz of Wells Fargo &
Company, +1-415-222-1679, or Web site: http://www.wellsfargo.com/
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