Small Business Soft on Incentives for Job Creation
According to the PNC Economic Outlook's survey, four out of five U.S. small business owners will maintain or reduce their full time employees over the next six months. They see little value in the proposed Federal incentives in creating jobs.
From the survey, 14% say that the proposed tax incentives will positively impact their hiring plans. Compared to last spring, expectations for sales and profits are significantly lower.
Despite the pessimistic view, eight out of ten business hope to grow over the next two years. And three out of ten business owners expect higher profits this holiday season compared to last year.
From these, 70% expect a six percent increase in profits this year. 41% foresee no change in profits from last year and 29% expect a decline.
The number one factor in all this is unemployment. The job situation is an uphill struggle. People with jobs are not sure if they are stable and those without have a hard time finding one. A situation precarious as this will affect the spending power of the population.
With the news that the iPhone 4s pre-sold one million units in a single day, business owners can hope that this coming holiday period may be the game saver that they have been waiting for.