Uncertainty Keeping Business Plans From Being Executed

Economic uncertainty and questions about the impact of health care reform and congressional tax and small business lending legislation are keeping many small businesses on the sidelines and not executing sound Business Plans.  In my discussions with small business owners, they are hesitant to hire, expand locations, and inventory.

• There is a small business bill that is now stuck in the Senate. This bill would establish a  $30 billion small business lending program for community banks and provide small companies billions in new tax breaks.  Generally funding has been fairly tight even though a few larger banks are beginning to make some more loans.  Until this goes through, it will be tough to act on.

• Small businesses are not seeing much of a recovery as evidenced through several surveys and general discussions.  Small Businesses have a lot of consumer like sentiment in "what recovery?"

• Many small business owners are still trying to get a handle on what impact Health Care will have on them. Some accounting entrepreneurs are creating health care tax calculators to help small businesses evaluate the impact.  Do companies try to avoid being over 50 employees through different legal structures?   How much will insurance cost continue to increase above inflation?  How much can employers pass on to their employees without triggering  health care penalties?

What I am observing is that many solid value generating business plans that are financially sound are setting on the table until we have more certainty.  How has this uncertainty impacted you?

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