Left-wing Vice President Kamala Harris, U.S. President Joe Biden and Senate Majority Leader Chuck Schumer, a New York Democrat, wear protective masks as they meet with Democratic senators in the oval White House office in Washington on Wednesday. February. , 2021 to discuss Covid-19 stimulus enhancement.
Stefani Reynolds | Bloomberg | Getty Images
Small business owners in America have been hit hard by the Covid-19 pandemic, and despite two rounds of federal loan programs designed to help smaller employers, a majority on Main Street continue to seek additional help.
Sixty-three percent of small business owners support the $ 1.9 trillion Covid aid package, which is currently being pushed by President Joe Biden’s administration and is being debated in Congress, according to the latest CNBC quarterly poll | SurveyMonkey Small Business Survey.
This includes 46% of Republican small business owners who show support for the new Democratic administration’s first major legislative proposal. In fact, Biden’s aid package has far more Republican support than Biden himself. Only 14% of Republican small business owners say they approve of Biden’s presidency.
More relief support comes as confidence among small business owners has fallen to an all-time low since the quarterly follow-up survey began in 2017. The small business confidence index has fallen from 48 out of 100 possible in the fourth quarter of last year to 43 this year. quarter. In addition, the number of small business owners who say they can continue to operate for more than a year under current business conditions has fallen from 67% in the fourth quarter to 55%.
CNBC Survey 201 | The SurveyMonkey Small Business Survey was conducted between January 25 and January 31 using the SurveyMonkey platform and included responses from 2,111 small business owners across the country.
The debate over more federal relief has become more partisan among small business owners now that former President Donald Trump has left office. In the fourth quarter, 83 percent of small business owners expressed support for what became a $ 900 billion package approved by Congress and signed by Trump in late December.
“There are more Republicans than Democrats who own small businesses,” said Laura Wronski, scientific manager of SurveyMonkey research. “When I launched the last poll, it was after the election, but it was still in this interim period that … there was still a little bit of doubt in people’s minds. [about the outcome]. I think people’s perceptions could have worsened, while in December they were a little better prepared. As this is the initial presentation of the Biden administration, it becomes easier to say yes or no. “
Support for the latest package may have declined, says Wronski, due to the possibility that it may include an increase in the federal minimum wage, a measure that is usually unpopular with business owners. The survey found that 54% of small business owners oppose raising the federal minimum wage to $ 15 / hour, while 44% support the increase.
Sharp decline in Main Street business prospects
Overall, the confidence of small businesses has been affected by a sharp decline in the number of small business owners, stating that general business conditions are “good” (from 39% in the fourth quarter of 2020 to 29% this quarter). ), as well as large increases in the number of small business owners who expect potential changes in fiscal, trade, regulatory and even immigration policy in the next year to have a negative impact on their business – all largely the result of a “Collapses” of trust between Republican small business owners.
Wronski noted that a year ago, only 17% of Republicans said they expected government regulations to have a negative impact on their business. This quarter, this number is 82%, essentially more than four times a year. Meanwhile, in the first quarter of 2020, 40% of Democrats said they expect regulatory changes to have a negative impact on their business, and this quarter has dropped to 12%. “This is a good example of how growing the confidence of Democrats is not able to offset the decline in Republican confidence. The magnitude is so different between the two groups in terms of how much their perceptions have changed from year to year.” , she said.
Confidence among Republican small business owners has completely collapsed since Trump lost the 2020 election to Biden. The confidence index of small businesses for Republicans is 32, ie 25 points lower than in the third quarter of 2020, the last poll conducted before the election. It is also 9 points lower than the lowest trust value for Democratic small business owners during Donald Trump’s presidency.
In contrast, confidence among small business owners who identify as Democrats increased to 63, up 17 points from the pre-election poll.