Election will have impact on sales or plans over next 12 months, many SMB leaders say

More than 4 in 10 small business leaders expect the upcoming election to have an impact on their company’s sales or plans.

“Election uncertainty poses a major challenge for many businesses, with 44% of leaders expecting it to impact operations,” said Joe Galvin, chief research officer for Vistage, a CEO coaching and peer advisory organization. “To support employees and maintain productivity, it’s essential for leaders to prioritize transparent communication, foster engagement and reinforce a supportive work environment. While organizations may have clear policies about not discussing politics in the workplace, offering dedicated time off for voting can also help employees balance their civic duties with carrying out their job roles effectively.”

Small business leaders shared their opinions on six economic issues in the WSJ/Vistage Small Business CEO Confidence Index for July.

• Overall economy. Thirty-eight percent of respondents believe overall economic conditions in the United States have worsened compared with one year ago. Eighteen percent said they have improved, and 43% said they have remained the same.
• Future economy. Nearly half (47%) expect overall economic conditions to remain about the same during the next 12 months, while 25% expect them to become worse and 21% look for them to be better.
• Expected revenues. Fifty-seven percent anticipate that their company’s revenues will increase during the next 12 months. Thirty percent expect them to remain about the same, and 12% anticipate decreased revenues.
• Profitability projections. Nearly half (46%) of small-business leaders expect profitability to improve over the next 12 months, compared with 34% who expect profitability to remain about the same and 20% who expect it to worsen.

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• Future investments. More than half (54%) said total fixed investment expenditures are likely to remain the same during the next 12 months, while 28% anticipate increased spending and 16% expect a decrease.
• Future employment. Respondents are fairly evenly divided when asked whether their total number of employees will increase or stay the same over the next 12 months. Forty-nine percent expect their workforce to remain the same, 43% said it will increase and just 8% believe it will decrease.

Finally, small business leaders cited insurance as one of their fastest-rising expenses.

“Our July survey quantified all increases in various costs, revealing that some of the steepest cost increases have come from insurance, with 42% of small businesses reporting greater than 10% increases in insurance,” said Anne Petrik, vice president of research for Vistage.