Poll Shows Small Business Owners Weary of Government Regulations

According to a recent Gallup poll, complying with government regulations is the biggest obstacle small businesses are facing in the current economy. The poll asked small business owners throughout the country, "What do you think is the most important problem facing small-business owner like you today?" Respondents were not given options to select for the open-ended question. The results are as follows:

• Complying with government regulations - 22%
• Consumer confidence - 15%
• Lack of consumer demand - 12%
• Lack of credit availability - 10%
• Poor leadership, government, president - 9%
• Cash flow - 7%
• New healthcare policy - 5%
• Competition from big business and overseas - 4%
• Lack of jobs - 4%

While little immediate action can be taken to rectify some concerns listed by small business owners, such as poor leadership and new healthcare policy, there is action small businesses can take in other areas. 

Complying with Government Regulations

Small business owners who have won government contracts or those who have attempted to understand the immense amount of red tape involved in the process of contracting with the government. For small business owners who have not yet taken this step, understanding and complying with other regulations regarding taxation, employees, health and safety, and conducting business in general can be a daunting task.

Consumer Confidence/Lack of Consumer Demand

In addition to being tough on small businesses, the poor economic climate has likely negatively impacted the clients and customers of the small businesses that depend on them for survival. Many consumers lack confidence in the economy, which means they are hesitant to spend money. Small businesses can overcome this problem by continuing their marketing efforts during this time. Although marketing does take time and does require money (sometimes), the payoff is well worth it. It is much more cost effective to keep loyal customers than it is to gain new ones. Clear, consistent communication builds lasting relationships.