Top problems for small businesses

Fact Sheet 3| Largest Changes In Problem Ranking: Aug 2012 2008 to 2012 The 2012 edition of Problems and Priorities includes a number of notable swings in issue importance from 2008 that reflect dramatic changes in the economy and shifts in government priorities that affect small business. Of those problems that fell furthest in the ranking, all are related to the economic downturn. The charts below depict shifts in ranking positions from 2008 to 2012. Most Difficult in 2012 - 1. Environmental Regulations 20 2. Obtaining Long-Term (5 years + ) Business Loans 17 3. Obtaining Short-Term (less than 12 mths or revolving) Business Loans 14 4. Finding Out about Regulatory Requirements 13 5. Cost of Government Required Equipment / Procedures 11 6. Health / Safety Regulations 10 7. Poor Sales 9. 8. Dealing with IRS / State Tax Agencies 9. Frequent Changes in Federal Tax Laws and Rules 10. Anti-Competetive Practices (i.e. Price Fixing) 6. Obtaining Long-Term (more than 5 years or more) Business Loans Obtaining Short-Term (less than 12 months or revolving) Business Loans 1982 1986 1991 1996 2000 2004 2008 2012 Poor Sales Poor Earnings (profits) 1982 1986 1991 1996 2000 2004 2008 2012 Before the September 2008 market crash, obtaining credit was relatively easy with few concerned over lending risks. After the fall of the Lehman Brothers, everything changed and banks became more conservative with lending practices. Coupled with more small business owners seeking loans under distressed circumstances, overall access increased in problem severity. More conservative lending practices will likely persist as government agencies continue to implement regulations related to Dodd-Frank in an effort to stem the risks of "too big to fail" banks. Less Difficult in 2012 1. Interest Rates 30 2. Finding and Keeping Skilled Employees 3. Employee Turnover 21 4. Locating Qualified Employees 20 5. Locating Business Help When Needed 12 6. Reducing Energy Use in a Cost-Effective Manner 12 7. Controlling My Own Time 12 8. Pricing My Goods / Services 10 9. Cost and Availability of Liability Insurance 10 10. Cost of Outside Services (i.e. Accountants, Lawyers, etc.) 9. Locating Qualified Employees Finding & Keeping Skilled Employees Employee Turnover 1982 1986 1991 1996 2000 2004 2008 2012 The recession resulted in large lay-off of skilled employees, increasing the pool of qualified candidates for those businesses with job openings. If the recovery continues on its current path, owners will soon need to hire more employees to keep up with demand which in-turn will increase the burden of these employee-related problems. To View Complete Report Go To: www.nfib.com/pp2012 For More Small Business Information Visit: www.nfib.com NFIB Research The Voice of Small Business Foundation