Smallbiz isn’t feeling the love from Uncle Sam

Apparently, small business isn’t feeling the love from Uncle Sam. In fact, half of all respondents to an online survey of small-business owners said the government does not do enough to support small businesses.

That’s the conlcusion from a online survey of more than 1,100 small-business owners and executives of companies with five to 499 employees in December 2015  by Wasp Barcode Technologies in its 2016 State of Small Business Report. About 80 percent of all U.S. small businesses have 10 or fewer employees. (Wasp is a barcode system provider that enables businesses to track everything from fixed assets to inventory to people.)

Among the other key findings:

Top challenges facing small business.

Half of all respondents said hiring new employees, 45 percent said increasing profit and employee healthcare were the next biggest challenges, closely followed by 43 percent who said growing revenue was the biggest challenge.

Too Much Paperwork robs time from building the business.

According to regulations.gov, on average, federal agencies and departments issue nearly 8,000 regulations annually. Consider the impact of complying with just a few regulations of the Affordable Care Act. Businesses with 50 or more employees are now subject to new IRS reporting requirements and must complete two additional forms related to healthcare coverage.

Each form is supposed to take just 15 minutes to fill out, but that doesn’t account for the hours of accounting, eligibility determination and data-collection time that must be put in before the business owner can even start work on the reports.

At 15 minutes per form, that’s an extra 30 minutes per year spent on paperwork. Now multiply that by 161,000 small businesses with 50 or more employees, and that’s 3,354 days spent on paperwork for just one government requirement.

Government support, or the lack of it, directly impacts small business.

Additional time and costs associated in complying with rules and regulations means small businesses have less time to focus on core business needs, such as capital expenditures and raises for existing employees.

There’s also a ripple effect. The construction firm can’t hire the contractor. The contractor can’t buy the new truck he needs for his business. The car salesman can’t get the commission he needs to hire a plumber.

Interestingly, the smaller the business, the less they want government involved. Larger small businesses, on the other hand–those with more than 100 employees–feel better about government, and 37 percent of them said government does enough to support small businesses.

The Obama administration says it has made support of small business a top priority. The administration cites 18 tax cuts it has passed for small business, that it expanded and accelerated payment on government contracts and also launched a one-stop shop to make it easier for small businesses to access services and information they need to help them grow, hire, export and compete globally.

The administration also repealed the Bush administration-era rule requiring that the IRS withhold 3 percent of a contractor’s income.

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