Small Business Growth Stalls As Owners Look For More Support
Written by Ken Gaebler
Small businesses are hesitant to hire or ask for loans because they're still weary of another economic downturn.
Uncertainty over the economic climate has led to many small businesses owners refusing to take drastic measures to hire or expand, according to the Fox Small Business Center.
"We will not see an increase in jobs or expansion and growth in small business until our government creates a more certain environment for them," Sam Graves, chairman of the House of Representatives' Small Business Committee, tells the media outlet. "A lot of small business owners are waiting and holding back, they are sitting on their hands and cash because they are afraid of what Washington is doing."
Republican Representative Chuck Fleischmann adds that the biggest concerns for small business news today are the availability of capital and the predictability of tax rights. Rising gas prices are also creating a level of uncertainty for owners.
"They are hoping people in elected office stand up and support them with actions like the 1099 repeal," said Fleischmann.
The repeal of the 1099 provision in last year's healthcare reform law was a giant victory for small businesses. The law would have required companies to submit 1099 forms to the Internal Revenue Service for any vendor they used for goods and services that exceeded $600 per year, notes CFO.com.
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