Moreover, according to the findings of the American Express OPEN Economic Pulse survey of small business owners, hiring incentives may not even drive job creation for smaller companies. Conducted from January 28 - February 1, the results of this survey [PDF] of small business owners indicate that 51% of business owners will take advantage of a tax credit for hiring of the Senate bill passes into law. However, only 11% indicate that tax credits factor into a decision to hire. A tangent worth considering here is why 49% won't take the tax credit. Though tax credits won't prompt a hiring spree, more business will - go figure. The runaway winner in terms of spurring job creation for SMBs is customer demand; 42% ranked it as the leading determiner in hiring.
Based on this survey data, expectations for the Senate bill to spur substantial job creation should be tepid at best. According to the SBA, small businesses employ just more than half of U.S. workers [PDF]. So while the estimated 29 million plus small businesses may not have a big individual footprint in the labor market, collectively, the impact is significant. And the clear message here is that incentives or no, what SMBs really need is customers to start spending again.
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