Small Businesses Support Shutdown
Senior Editor, CNBC.com
Many small business owners support a government shutdown and believe that it will have little effect on them, according to a new study.
The study from Pepperdine University’s Graziadio School of Business and Management reports that 48 percent of small private business owners and those who lend to small businesses said they supported a government shutdown. Thirty-nine percent said they opposed a shutdown.
The survey also showed 62.4% of supporters said they would support a shutdown even if it lasted a month or more.
Some other results:
- 84.4% of small business owners believe there will be no impact on privately-held companies from a one-day shutdown; tapers to 75.7% for one week; 60.6% for two weeks.
- 96.7% believe there will be no impact on hiring plans for privately-held companies for a one-day shutdown; tapers to 93.5% for one week; 89.6% for two weeks.
- 98.8% believe there will be no impact on current employment base for privately-held companies for a one-day shutdown; tapers to 98.1% for one week; 97.0% for two weeks.
“The idea that a government shutdown would have a short-term impact on critical areas such as hiring and staffing is not supported by data,” said John Paglia, associate professor of finance at Pepperdine University’s Graziadio School of Business and Management. “Private business owners and lenders appear to be more concerned with a drawn-out, protracted stalemate that would jeopardize an overall economic recovery.”
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