POLITICS OF SMALL BUSINESS. NSBA 2014 Politics of Small Business Survey

Transcription

1 POLITICS OF SMALL BUSINESS NSBA Politics of Small Business Survey 1

2 FOREWORD As the midterm elections kick into high gear, America s small businesses continue to be embraced by candidates looking to reach out to a powerful voting bloc. And while small businesses are remarkably involved and engaged in the political process, their political positions and ideologies are as diverse as the economy they fuel. One area where nearly all small-business owners agree regardless of party affiliation is that policymakers don t really understand small business very well, and our system is increasingly not working for them. NSBA s small-business members have been telling us for some time that they simply want lawmakers to do their jobs not merely exist in a constant campaign season. This survey, the NSBA Politics of Small Business Survey follows up on our survey and was conducted online among more than 1,800 small-business owners in May. What we found underscores the real-world implications of the growing partisan rancor in Washington, D.C. and beyond: a less involved small-business community increasingly frustrated with their elected officials. Among the key findings: 95 percent of small-business owners say they vote regularly in national contests, down slightly from 97 percent in ; and there was a drop among small-business owners who reported contacting their elected officials. Today, 63 percent of small firms say they contributed money to a candidate s campaign, down from 69 percent in, and those who contributed to a political action committee was more than cut in half. In-line with past, independent polls, the NSBA survey found that small-business owners party affiliations are split roughly in thirds, with slightly more affiliating with the Republican party. Despite those affiliations, however, small businesses are overwhelmingly independent and the majority 82 percent say they don t vote a straight party ticket. Simply put: no party owns the small-business vote. Another common thread among small-businesses owners is that, regardless of party affiliation, they overwhelmingly rank economic and fiscal issues as the top factor in determining how they vote. When it comes to specific issues on which they have sought lawmakers attention, Republican and Democratic small-business owners agree that controlling health care costs and tax reform are important. issues than not. Significant majorities of both Republicans and Democrats agree that politics have become more partisan in the last 10 years and that the current political system does not serve their business well. Despite the majority of respondents noting that they have made political contributions in the past, 60 percent support limiting campaign contributions from corporations and onethird support prohibiting all campaign contributions such as so-called clean elections. As small businesses continue bouncing back from the Great Recession, it is important that policies that promote entrepreneurship and the ability for small businesses to start, run and grow be given priority. There are 70 million small-business owners or employees in the U.S. that s one in three of the U.S. voting population. While the outcome of this survey shows a relatively strained relationship between lawmakers and small business, it is not too late. Lawmakers have a long, and growing, to-do list which includes many measures that could positively impact small business. These actions are far more important than a hat-tip to small business during a stump-speech. Current and hopeful lawmakers have an opportunity to reach out to a massive voting block by underscoring their commitment to America s small-business community. We hope you find the information in this survey useful. Sincerely, Interestingly and speaking to the larger issue of disillusionment with elected officials when asked to rate which party was more supportive on a particular issue, Neither party was the highest rated response on more Jeff Van Winkle NSBA Chair Clark Hill Todd McCracken NSBA President & CEO 2 NSBA Politics of Small Business Survey

3 DEMOGRAPHICS HOW MANY TOTAL FULL-TIME PERSONNEL ARE CURRENTLY EMPLOYED BY YOUR BUSINESS? WHICH OF THE FOLLOWING BEST DESCRIBES THE STRUCTURE OF YOUR BUSINESS? 0 5% CORPORATION PARTNERSHIP LLC SOLE PROPRIETORSHIP S-CORP 1 to 5 39% 6 to 19 27% 42% 20 to 99 23% 26% 100 to % 5.5% 10% 2% 20% IN WHAT REGION IS YOUR BUSINESS LOCATED? New England 7% Mid-Atlantic 21% Great Lakes 15% Farm Belt 6% South 24% Mountain 10% Pacific 16% WHAT WERE YOUR GROSS SALES OR REVENUES FOR YOUR MOST RECENT FISCAL YEAR? Less than $100,000 13% $100,000 to $250,000 11% $250,001 to $500,000 9% $500,001 to $1 million 14% $1 million to $5 million 28% $5 million to $25 million 17% $25 million to $75 million 4% $75 million to $150 million 1% More than $150 million 0% It is worth noting that the businesses surveyed represent a slightly larger proportion of c-corps than what is found in the at-large smallbusiness community where approximately 17 percent are c-corps. Additionally, employee size and revenues are slightly larger among the survey sample than what is generally found among the atlarge small-business community. Finally, the survey respondents represent a slightly higher proportion of manufacturers and professional services. WHICH OF THE FOLLOWING BEST DESCRIBES THE INDUSTRY OR SECTOR IN WHICH YOUR BUSINESS OPERATES? Manufacturing 16% Professional 11% Scientific and Technical Services 11% Construction 11% Other Services (except Public Administration) 11% Retail Trade 7% Information (IT) 6% Wholesale Trade 5% Health Care and Social Assistance 4% Educational Services 3% Transportation and Warehousing 2% Real Estate, Rental and Leasing 2% Agriculture, Forestry, Fishing and Hunting 2% Arts, Entertainment, and Recreation 2% Finance 1% Administrative and Support 1% Utilities 1% Accommodation and Food Services 1% Insurance 1% Management of Companies and Enterprises 1% Waste Management and Remediation Services 1% Public Administration 1% Mining 0% NSBA Politics of Small Business Survey 3

4 POLITICAL INVOLVEMENT Small-business owners have a remarkably high percentage of being registered to vote and are politically active on myriad issues not just small-business specific issues. These high rates of involvement have dropped, however, in the past two years, in-line with national trends of voter turnout. Ninety-five percent of small-business owners say they vote regularly in national contests, compared to a meager 58 percent voter turnout for the elections. Nationally, there was a drop in overall voter turnout down from 62 percent in 2008 to 58 percent in, despite an increase of over eight million new eligible voters, according to the Bipartisan Policy Center. This drop corresponds with reductions in the number of small-business owners who say they vote regularly in local and city contests, from 85 percent in down to 78 percent today; state contests, from 94 percent in to 89 percent today; and national contests, down slightly from 97 percent to 95 percent today. The NSBA Politics of Small Business Survey found a drop among small-business owners who reported contacting their elected officials as well as those firm owners who say their elected officials know who they are. Small businesses remain highly engaged in the campaign process, albeit at a slightly lower rate, with 63 percent saying they contributed money to a candidate s campaign, down from 69 percent in. Those small-business owners reporting they contributed money to a political action committee (PAC) was more than cut in half. Interestingly, there was a slight increase among small-business owners who reported contributing to a political party. Taken on a macro level, the voter turnout drops and changes to campaign contributions appears to signal that, while small-business owners may be digging in a bit more to their own ideological beliefs, there is a growing level of discontent. ARE YOU REGISTERED TO VOTE? 97.5% reported being registered to vote. HOW REGULARLY WOULD YOU SAY YOU VOTE IN THE FOLLOWING ELECTIONS/BALLOT INITIATIVES? REGULARLY Local and city contests State contests National contests OCCASIONALLY 1% 1% 2% 2% 4% 1% 5% 3% 3% 13% 9% 18% NEVER 78% Small-business owners have a remarkably high rate of political involvement with 95 percent voting regularly in national contests. 85% 89% 94% 95% 97% 4 NSBA Politics of Small Business Survey

5 POLITICAL INVOLVEMENT HAVE YOU EVER CONTACTED YOUR ELECTED OFFICIALS ON AN ISSUE NOT HAVING TO DO WITH YOUR SMALL BUSINESS? HAVE YOU EVER CONTACTED YOUR ELECTED OFFICIALS ON A SMALL-BUSINESS ISSUE? 29% 31% 71% 69% YES NO YES NO DOES YOUR ELECTED OFFICIAL KNOW WHO YOU ARE? HAVE YOU EVER CONTRIBUTED MONEY TO YES NO NOT SURE 28% 32% 40% A candidate s campaign 63% 69% A political party 42% 38% An issue-specific campaign 34% 42% A political action committee 26% 56% A 527 organization 6% 6% Never contributed any money 25% 20% PARTY COMPARISON: HAVE YOU EVER CONTRIBUTED MONEY TO REPUBLICANS DEMOCRATS A candidate s campaign 65% 76% A political party 49% 50% An issue-specific campaign 32% 41% A political action committee 33% 21% A 527 organization 7% 5% Never contributed any money 22% 16% Other 3% 3% NSBA Politics of Small Business Survey 5

6 POLITICAL AFFILIATION The Politics of Small Business Survey found that small-business owners party affiliations are split roughly in thirds, with slightly more affiliating with the Republican party. This is in-line with a 2007 Fortune Small Business/Zogby poll which pointed to a similar political split among small-business owners. Despite political party affiliation, small businesses are overwhelmingly independent and the majority 82 percent say they don t vote a straight party ticket. Seventyseven percent of Republicans report voting independent occasionally while 70 percent of Democrats report the same. More than half of Republicans (56 percent) report they vote for Democrats occasionally or regularly and 58 percent of Democrats report they vote for Republicans occasionally or regularly. Ultimately, the overwhelming majority of both Democrats and Republicans, 91 percent and 93 percent, respectively, report regularly voting within their own party. REPUBLICAN 39% TEA PARTY 5% GREEN PARTY 0% WHAT IS YOUR POLITICAL PARTY AFFILIATION? INDEPENDENT 29% LIBERTARIAN PARTY 3% DEMOCRATIC 22% OTHER 1% DO YOU VOTE A STRAIGHT PARTY TICKET? 17.5% of small-business owners vote a straight party ticket PARTY COMPARISON: DO YOU VOTE A STRAIGHT PARTY TICKET? YES NO 21% Republicans 79% 27% Democrats 73% No party owns the small-business vote - the overwhelming majority of small-business owners do not vote a straight party ticket. 6 NSBA Politics of Small Business Survey

7 POLITICAL AFFILIATION HOW REGULARLY WOULD YOU SAY YOU VOTE: REGULARLY REPUBLICAN INDEPENDENT DEMOCRATIC OTHER OCCASIONALLY 11% 14% 16% 10% NEVER 28% 34% 40% 26% 29% 61% 70% 61% PARTY COMPARISON: HOW REGULARLY WOULD YOU SAY YOU VOTE: Regularly Occassionally Never Republicans Republican 93% 7% 1% Independent 5% 77% 18% Democratic 2% 54% 44% Other 3% 27% 70% Regularly Occassionally Never Democrats Republican Independent Democratic Other 4% 54% 42% 4% 70% 26% 91% 8% 1% 5% 28% 67% NSBA Politics of Small Business Survey 7

8 THE ISSUES Most small-businesses owners, regardless of political affiliation, place a higher level of importance on economic and fiscal issues than they do on national security and social issues. On fiscal issues and the economy, 74 percent of small-business owners say they lean conservative while just 47 percent lean conservative on social issues and 62 percent lean conservative on foreign affairs. Broken down by party affiliation, 93 percent of Republican small-business owners say they lean conservative overall whereas just 72 percent of Democratic small-business owners say they lean liberal overall. Thirty percent of Democrats say they lean conservative on fiscal issues and the economy. Republican smallbusiness owners report lower rates of otherparty tendencies with 24 percent saying they lean independent or liberal when it comes to social issues the highest indicator among social issues, the economy and foreign affairs. When it comes to key issues, Republican and Democratic small-business owners agree that controlling health care costs and tax reform are important and have contacted their elected officials on these issues. However, when asked to rate which party is better on a particular issue, political affiliation played a significant role. Interestingly and speaking to the larger issue of disillusionment with elected officials when asked to rate which party was more supportive on a particular issue, Neither party was the highest rated response on more issues than not. In-line with NSBA s member-approved priority list, tax reform comes in at the top, however among Democrats, it only ranks as the number four issue. One common thread among these issues that both Republicans and Democrats support relatively highly is reducing health care costs. POLITICAL AFFILIATIONS IN THE FOLLOWING THREE CATEGORIES. Overall Social Issues Fiscal Issues /Economy Foreign Affairs / National Security Strong Conservative 26% 21% 42% 32% Moderate Conservative 35% 26% 32% 30% Independent 19% 19% 13% 22% Moderate Liberal 12% 20% 10% 11% Strong Liberal 6% 13% 4% 4% PARTY COMPARISON: POLITICAL AFFILIATIONS IN THE FOLLOWING THREE CATEGORIES. Republicans Overall Social Issues Fiscal Issues /Economy Foreign Affairs / National Security Conservative 93% 76% 96% 91% Independent 6% 17% 3% 8% Liberal 1% 7% 1% 1% Democrats Overall Social Issues Fiscal Issues /Economy Foreign Affairs / National Security Conservative 11% 8% 30% 18% Independent 17% 8% 20% 29% Liberal 72% 84% 50% 53% PLEASE RANK 1 THROUGH 3, WITH 3 BEING THE MOST IMPORTANT, HOW THE FOLLOWING ISSUE AREAS DETERMINE HOW YOU VOTE. THREE CATEGORIES. Overall Republicans Democrats Economic and fiscal issues Social issues Foreign affairs/national security NSBA Politics of Small Business Survey

9 THE ISSUES IF YOU HAVE CONTACTED YOUR ELECTED OFFICIALS ON A SMALL-BUSINESS ISSUE, WHAT WERE THE ISSUES? (CHECK ALL THAT APPLY) Total Republicans Democrats Tax Reform 40% 45% 23% Controlling Costs of Health Care 39% 44% 27% A local issue 35% 34% 36% Regulatory Reform 28% 29% 19% Small-Business Contracting 26% 25% 31% Deficit Reduction and Entitlement Reform 22% 26% 10% Immigration Reform 16% 17% 16% Other 16% 11% 22% Improving Access to Capital 12% 9% 14% Fair Labor/Union issues 11% 14% 10% Tort reform/medical malpractice reform 11% 14% 4% A casework issue involving my business 11% 10% 11% SBA Lending Programs 10% 8% 14% Exporting/Free Trade issues 9% 11% 9% Energy efficiency for small business 7% 5% 13% SBA Office of Advocacy 7% 6% 8% SBIR Reauthorization 7% 3% 12% White House Conference on Small Business 5% 4% 7% WHAT DO YOU THINK THE FEDERAL GOVERNMENT SHOULD DO TO HELP YOUR BUSINESS? (CHECK ALL THAT APPLY) Small-business owners overwhelmingly rank economic and fiscal issues as the top factor in determining how they vote. Total Republicans Democrats Reduce and reform taxes 64% 78% 37% Get out of the way 58% 77% 14% Reduce and reform regulation 56% 73% 26% Reduce health care costs 53% 57% 49% Level the playing field for small businesses 50% 40% 71% Improve lending 24% 19% 38% Provide more assistance programs 14% 9% 27% Other 10% 5% 14% NSBA Politics of Small Business Survey 9

10 THE ISSUES PLEASE CHECK WHICH PARTY YOU THINK IS MORE SUPPORTIVE OF SMALL BUSINESS ON THE FOLLOWING ISSUES. Republican Democratic Neither Not Sure Controlling Costs of Health Care 40% 23% 33% 5% Deficit Reduction and Entitlement Reform 42% 14% 38% 6% Energy efficiency for small business 14% 28% 30% 27% Exporting/Free Trade issues 31% 13% 33% 23% Fair Labor/Union issues 37% 24% 26% 13% Immigration Reform 26% 28% 37% 10% Improving Access to Capital 26% 14% 40% 20% Regulatory Reform 37% 14% 37% 13% SBA Lending Programs 16% 19% 30% 35% SBA Office of Advocacy 17% 15% 27% 41% SBIR Reauthorization 13% 10% 25% 52% Small-Business Contracting 24% 16% 35% 25% Tax Reform 44% 16% 34% 6% Tort reform/medical malpractice reform 33% 9% 38% 20% White House Conference on Small Business 29% 17% 24% 30% PARTY COMPARISON: PLEASE CHECK WHICH PARTY YOU THINK IS MORE SUPPORTIVE OF SMALL BUSINESS ON THE FOLLOWING ISSUES. Republican Party Democratic Party Neither Party Not Sure REP. DEM. REP. DEM. REP. DEM. REP. DEM. Controlling Costs of Health Care 66% 4% 2% 70% 28% 20% 3% 5% Deficit Reduction and Entitlement Reform 67% 10% 1% 47% 28% 35% 4% 7% Energy efficiency for small business 26% 1% 14% 62% 31% 15% 28% 22% Exporting/Free Trade issues 50% 8% 3% 38% 26% 28% 21% 26% Fair Labor/Union issues 56% 8% 9% 65% 23% 14% 12% 12% Immigration Reform 43% 3% 8% 73% 38% 14% 10% 9% Improving Access to Capital 44% 6% 5% 39% 32% 35% 20% 20% Regulatory Reform 60% 11% 2% 43% 28% 29% 11% 17% SBA Lending Programs 31% 2% 7% 47% 27% 18% 35% 32% SBA Office of Advocacy 30% 3% 5% 41% 26% 15% 40% 42% SBIR Reauthorization 24% 1% 3% 30% 21% 17% 52% 51% Small-Business Contracting 42% 4% 5% 43% 29% 26% 23% 27% Tax Reform 71% 8% 2% 51% 23% 32% 3% 8% Tort reform/medical malpractice reform 49% 15% 3% 28% 33% 30% 15% 26% White House Conference on Small Business 51% 4% 3% 52% 20% 16% 26% 29% 10 NSBA Politics of Small Business Survey

11 RATING POLICYMAKERS When asked to rate the performance of their elected officials, both Republicans and Democrats had somewhat higher marks for their own elected Senators and Representatives but expressed less-than stellar marks for the collective bodies. When asked to rate how well specific elected officials or bodies support smallbusiness issues, there are clear differences among Democrats and Republicans, with both sides giving higher marks to parties and individuals in their own party. There was consensus between Republicans and Democrats that Members of Congress, their staff and the administration don t really understand small business. HOW WELL DO YOU THINK YOUR ELECTED OFFICIALS REPRESENT YOU? Well Moderately Not well Local elected officials (i.e.: County Commissioners) State elected officials (State House and Senate) Nationally elected officials (U.S. Senate and House) 20% 52% 28% 12% 47% 40% 7% 31% 61% PARTY COMPARISON: HOW WELL DO YOU THINK YOUR ELECTED OFFICIALS REPRESENT YOU? Well Moderately Not well REP. DEM. REP. DEM. REP. DEM. Local elected officials (i.e.: County Commissioners) State elected officials (State House and Senate) Nationally elected officials (U.S. Senate and House) 22% 22% 53% 51% 25% 27% 15% 14% 52% 48% 34% 38% 7% 12% 31% 46% 61% 42% More than two-thirds of small-business owners and oftentimes more believe policymakers inside the beltway have little to no understanding of small-business issues. NSBA Politics of Small Business Survey 11

12 RATING POLICYMAKERS HOW WELL WOULD YOU SAY THE FOLLOWING GROUPS/PEOPLE UNDERSTAND SMALL-BUSINESS ISSUES? Very Well Somewhat Well Not Well vnot at all REP. DEM. REP. DEM. REP. DEM. REP. DEM. President Barack Obama 0% 32% 4% 45% 18% 16% 78% 7% U.S. Senators 1% 8% 16% 41% 47% 36% 36% 15% U.S. Representatives 4% 3% 39% 18% 40% 41% 17% 38% Congressional Staff 2% 3% 20% 30% 44% 42% 34% 25% Appointed Administration Officials 0% 6% 9% 46% 38% 33% 53% 14% Administration/Agency Staff 1% 8% 12% 48% 38% 31% 49% 12% PLEASE RATE 1 TO 5, WITH 5 BEING THE BEST AND 1 BEING THE WORST HOW WELL THE FOLLOWING ELECTED OFFICIALS ARE SUPPORTING SMALL-BUSINESS ISSUES. Republicans Democrats President Barack Obama The U.S. House of Representatives The U.S. Senate Federal Agencies Your U.S. Senators and Representative NSBA Politics of Small Business Survey

13 POLITICAL DISCONTENT As witnessed by lower rates of political involvement, there is growing discontent among small-business owners with their elected officials and the overall U.S. political machine. Significant majorities of both Republicans and Democrats agree that politics have become more partisan in the last 10 years and that the current political system does not serve their business well. In, 48 percent of small-firm owners said the two party system was sufficient, but today, just 37 percent say it is sufficient. Today, 40 percent, up from 29 percent in, said that neither Republicans nor Democrats best represent them as an individual. The number who said neither party best represents their small business went from 26 percent in to 37 percent today. Interestingly, despite the majority of respondents noting that they have made political contributions, 60 percent support limiting campaign contributions from corporations and 47 percent support limiting campaign contributions from individuals. One-third of small-business owners support prohibiting all campaign contributions such as so-called clean elections. WHICH OF THE FOLLOWING CAMPAIGN REFORM STRATEGIES DO YOU SUPPORT? DO YOU THINK THE TWO PRIMARY POLITICAL PARTIES (REPUBLICAN AND DEMOCRATIC) ARE SUFFICIENT? YES TOTAL REPUBLICAN DEMOCRAT NO, THERE SHOULD BE MORE 37% 38% 42% 48% 49% 51% 48% WHICH PARTY DO YOU FEEL BEST REPRESENTS YOU AS AN INDIVIDUAL? 52% 53% TOTAL REP. DEM. TOTAL REP. DEM. Republican Party 38% 74% 2% 56% 84% 0% Democratic Party 23% 1% 82% 16% 1% 78% Neither Party 40% 25% 16% 29% 16% 22% 58% 63% 62% Prohibiting campaign contributions Limiting campaign contributions from individuals Limiting campaign contributions from corporations TOTAL REP. DEM. 38% 28% 47% 47% 39% 68% 60% 50% 81% More small businesses today say neither party best represents them as an individual. WHICH PARTY DO YOU FEEL BEST REPRESENTS YOUR SMALL BUSINESS? Liberalizing campaign contribution rules 8% 13% 2% No reforms necessary 12% 17% 5% Other 9% 9% 7% TOTAL REP. DEM. TOTAL REP. DEM. Republican Party 46% 78% 7% 62% 86% 13% Democratic Party 17% 1% 58% 12% 2% 55% Neither Party 37% 21% 34% 26% 12% 32% NSBA Politics of Small Business Survey 13

14 POLITICAL DISCONTENT DO YOU THINK THE CURRENT U.S. POLITICAL SYSTEM SERVES YOUR BUSINESS WELL MODERATELY NOT WELL 4% 35% TOTAL 61% 4% 32% REPUBLICANS 64% 7% 51% DEMOCRATS 42% IN THE LAST 10 YEARS, DO YOU THINK POLITICS HAVE BECOME MORE PARTISAN LESS PARTISAN ABOUT THE SAME 83% 6% TOTAL 12% 82% 7% REPUBLICANS 11% 88% 5% DEMOCRATS 7% 14 NSBA Politics of Small Business Survey

15 METHODOLOGY METHODOLGOY The NSBA Politics of Small Business Survey was conducted on-line May 19 May 28 among 1,868 small-business owners both members and nonmembers of NSBA representing every industry in every state in the nation. NSBA Politics of Small Business Survey 15

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