NASE News

Micro-Businesses Suffering Under Slowing Economy, Poll Shows

 

For Immediate Release: Contact:    Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander, NASEtweets

Less Than One-Quarter Of Businesses Planning To Hire Workers

Washington, D.C., February 4, 2010 – While Congress and the Obama Administration are hoping that small businesses will continue to be the engine of job creation and spur recovery, the sluggish economy has had a negative impact on the operations and hiring plans of many small businesses.  Over sixty percent of the self-employed and micro-business owners indicate that their business has experienced a significant decrease in sales and/or revenue, and almost fifty percent say they have had to utilize their personal savings or retirement savings to address cash flow issues, according to a study undertaken by the National Association for the Self-Employed (NASE).

More than three-quarters of the micro-business owners surveyed (77 percent) are not planning on hiring workers in 2010, with the majority indicating that they were not hiring because they were unable to pay the salary of or offer benefits to an additional worker. Of the twenty-three percent of respondents planning to hire workers this year, only 31 percent were planning to hire full-time workers. 

“The current economic slowdown is causing many challenges for micro-businesses,” commented NASE’s Executive Director, Kristie Arslan. “Self-employed business owners are being faced with difficult choices just to stay afloat in this current economic climate.”

When asked about various proposals put forth by Congress and the Administration to spur jobs, an overwhelming majority of respondents felt that none of the current recommendations would encourage them to hire additional workers.

To see the full results of the survey, visit NASE’s Research & Statistics Web page.

 

Methodology:

Posted on the NASE Web site and promoted via NASE’s newsletters and social media outlets, the survey was available for members and self-employed business owners to take in January. Almost 200 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

Kristie Arslan is available for more information about the poll or micro-businesses. Please contact Kristin Oberlander by phone at 202-466-2100 or by email at koberlander@nase.org with additional questions or to schedule an interview.

 



About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.NASE.org.