LR Joe Biden and Donald Trump
Small business owners (SBOs) are twice as likely to believe that a President Trump presidency would have a positive impact on their business than a President Biden presidency.
That's according to a new survey by retirement plan provider ShareBuilder 401(k), which found that half of the 500 SBOs surveyed believe the outcome of this year's presidential election will have a greater impact on improving their business than low interest rates or local government policies. The survey also found that a third of SBOs believe a Trump victory would have the biggest positive impact on their business, while 16% of SBOs believe a Biden victory would help improve their business prospects.
The ShareBuilder 401(k) reveals a striking gender disparity, with male SBOs supporting Trump 40% and Biden 14%, while female SBOs support Trump 25% and Biden 17%.
Additionally, the survey found that SBOs are postponing many business decisions, such as capital investments, hiring new employees, launching new products and services, and providing employee benefits, until after the election.
The survey also found that the top concerns regarding business growth were inflation at 61%, customer retention at 37%, competition from larger companies at 33% and labor costs at 26%. To manage the effects of inflation over the past year, half of SBOs have had to increase prices, 23% find lower-cost vendors and 22% increase employee wages. When asked how concerned SBOs are about the future of their business due to market volatility, 68% are at least somewhat concerned, of which 30% are extremely or very concerned.
“These survey results suggest that many small businesses are feeling precarious due to the current political climate, inflation and market volatility,” said Stuart Robertson, president and CEO of Sharebuilder 401(k). “Given that nearly half of Americans work for a small business, feelings of uncertainty could have broad implications for the nation's economic growth.”
Robertson noted that whether Republicans or Democrats win in November won't have a huge impact on 401(k) performance. Presidents don't tend to move the economy or markets during their four-year terms, but the mainstream may perceive it differently, he said. Instead, the Fed has a lot of influence over the economy through its control of interest rates and monetary policy during a president's term and beyond.
“Our government deserves its due. Our businesses operate in an effective free market fashion with fairly fair regulation in our country, which allows them to innovate and grow,” Robertson said. “No matter the political outcome, businesses should do what's best to grow their business and make a profit. This can lead to more job opportunities, higher pay and more, which overall can lead to a better economic situation for all Americans.”