State of the Union: Small Biz Owners Optimistic On 2016, But Critical Of Government

A majority of small businesses owners are both bullish and skeptical of what’s ahead for 2016. They state they anticipate business growth, while they are also worried about government regulation on businesses, according to a new survey that comes just ahead of President Barack Obama’s final State of the Union Address to Congress. The speech will be carried live by most TV networks on Tuesday at 9pm ET.

In the 2016 State of the Union Survey, 77% said they have a ‘positive’ or ‘very positive’ business outlook for 2016. Nearly half (48 percent) of small business owners said their business fared better in 2015 than in 2014 and a majority (72 percent) feel 2016 will be positive in comparison to 2015. The survey was commissioned by cloud business platform provider Endurance International Group.

Further results show that 79 percent of U.S. small businesses feel that Congress has not been effective in addressing issues important to small businesses – down from 87 percent last year. A majority (57 percent) of small business owners do not believe either party is effective on small business issues, with 76 percent believing that Congress should play a larger role in helping small business growth.

The survey also reveals that over half (57 percent) of small business owners plan to make financial investments this year, whether it is in product development, buying additional materials, or investing in real estate. Of those that are making financial investments, 47 percent would characterize the investments as ‘significant.’ And, surprisingly, 42 percent of small businesses plan to hire over the next year, a significant increase given that 93 percent of the small businesses surveyed currently have fewer than 6 employees, and 47 percent are sole proprietors.

When asked to rank key issues important to small businesses, survey respondents ranked Taxes and the Ability to Obtain Bank Financing as their top two concerns, respectively. As for issues that are most important for President Obama to address in his State of the Union address, respondents named The Economy, Education and National Defense as their top three concerns, ranking higher than Immigration and Race Relations.

“While small business owners are upbeat about their own business prospects, it is clear that they believe Washington could do more to help stimulate small business growth,” said Endurance CEO and Founder, Hari Ravichandran. “Concerns about taxes and the ability to obtain bank financing remain front and center. Congress must prioritize small business issues in order to create long-term economic growth.”

As for the current field of Presidential candidates, when asked about their thoughts on who would be the most effective leader on issues important to small business, small business owners selected Donald Trump the highest-ranking Republican candidate at 30 percent and Hillary Clinton the highest-ranking Democrat at 44 percent.

Survey Results

How did your business fare during 2015?

Same as 2014: 40%

Better than 2014: 48%

Worse than 2014: 13%

What is your general business outlook for 2016?

Very Positive: 28%

Positive: 49%

Neutral: 21%

Negative: 2%

Very Negative: 1%

What is your general business outlook for 2016 in comparison to 2015?

Same outlook: 24%

Negative compared to 2015: 4%

Positive compared to 2015: 72%

Do you plan to hire employees in 2016?

No: 58%

Yes: 42%

Do you plan to make any financial investments, such as investments in developing new products, buying materials or real estate, in your business in 2016?

No: 43%

Yes: 57%

If you plan to make any financial investments in 2016, how would you characterize them?

Significant: 47%

Minor: 41%

Same as last year: 12%

Do you feel that the Congress is effective in addressing issues important to small businesses?

No: 79%

Yes: 21%

Do you think Congress should play a larger role in helping small business growth in the United States?

No: 24%

Yes: 76%

Do you feel that President Obama has been an effective leader on issues important to small business?

No: 39%

Yes: 28%

Don’t know: 33%

Which political party do you feel best represents and advocates for small businesses in America?

Democratic Party: 25%

Republican Party: 18%

Neither Party: 57%

Will you watch the President’s State of the Union address?

No: 44%

Yes: 56%

Which Republican Presidential candidate do you think would be the most effective leader on issues important to small business?

Donald Trump: 30%
Jeb Bush: 11%
Ben Carson: 10%
Ted Cruz: 9%
Carly Fiorina: 7%
Rand Paul: 7%
Marco Rubio: 7%
John Kasich: 5%
Chris Christie: 5%
Lindsey Graham: 3%
Mike Huckabee: 3%
George Pataki: 2%
Rick Santorum: 2%
Jim Gilmore: 1%

Which Democratic Presidential candidate do you think would be the most effective leader on issues important to small business?

Hillary Clinton: 44%
Bernie Sanders: 37%
Martin O’Malley: 20%

*Due to rounding, numbers may not add up to 100%.

Full survey results can be found online here.