It’s Not Your Imagination
If you’ve noticed a slowdown in revenue from your small business clients since the government shutdown, you’re probably not imagining things. Data from our October SurePayroll Small Business Scorecard® suggests the shutdown had a material impact on small businesses, particularly those with 10 or less employees.
Small business owners now say that their expectations for the fourth quarter have dropped significantly. Prior to the shutdown, 42 percent believed they would exceed results from the third quarter, according to our survey data. Now only 27 percent are expecting to exceed those expectations.
On top of that, only 38 percent plan to make new investments in their business during the fourth quarter, down from 45 percent pre-shutdown. Back in June, it was as high as 54 percent.
The unfortunate theme here seems to be that the shutdown slowed business to a crawl on Main Street. Even if most small businesses are not doing work directly with the government, the shutdown meant less people working and spending money at their local businesses. It also created more uncertainty and a general sense of unease.
Now we’re seeing the real life consequences.
Michael Alter, payroll expert with an MBA from Harvard Business School, is a nationally recognized spokesperson providing thought-leadership and sensible advice to help accounting and payroll professionals build deeper more profitable relationships with clients. Alter, President of SurePayroll, writes the Trade Secrets column on INC.com and is frequently published in Bloomberg TV, the Wall Street Journal, and Entrepreneur Magazine.