01/16/2001
Survey research conducted throughout 1996 indicates that small business as a political voting block is an enormous resource that has gone largely untapped. The public perceptions of small businesses and their owners are extremely positive and the favorable ratings of small businesses are as good or better than any group we have tested. The American voting public respects small business owners' work ethic, determination, and perseverance. This high regard and genuine respect transcends party affiliation, ideology, gender, income, and nearly every other possible demographic. Small businesses touch the lives of a large percentage of voters either through ownership or as an employee of a small business. No political party or group currently acknowledges or embraces the small business community as a constituency. Whoever brings small business into the fold by addressing their issue agenda will gain a valuable and powerful segment of the electorate that could be the key to future elections.
IMPACT OF SMALL BUSINESS
Small business is an important part of a very large segment of the electorate in a variety of ways. Many of the people surveyed either own their own business, someone in the household owns their own business, someone in the household is employed by a small business, or some combination of each.
- A full 46 percent of voters casting ballots in the 1996 Presidential election own or work for a small business or a member of their household owns or works for a small business.
- Of those who voted in the 1996 presidential election, 19 percent said they own a small business and four percent said a member of their household owns a small business.
- Of the voters who did not own a small business, 18 percent said that they work for a small business and five percent said a member of their household works for a small business.
Again, small businesses play a role in the lives of a large number of American voters. If these voters can be mobilized around issues that directly effect their lives and their pocketbooks, they will be a force to be reckoned with in the political arena.
PERCEPTIONS OF SMALL BUSINESS
No group or segment of our country is so unilaterally held in high esteem as is the small business community. From Democrats to Republicans, liberals to conservatives, men, women, young, old, blacks, whites, and everyone in between, respect and admire the effort, time, and sacrifices that go into starting and building a small business. An exceedingly high number of voters correctly identify, not big business, not government, but small businesses as the backbone of the American economy. As a result, the campaigns and candidates that champion small business causes and issues position themselves to reap the benefits.
Consider the following key points:
- Almost 9 out of 10 voters have either a very or somewhat favorable opinion of small business owners (88 percent). Sixty-seven percent were very favorable toward small business owners. Only two percent had an unfavorable opinion.
- Of the respondents interviewed who do not currently own their own business, 47 percent stated that at some point they have seriously considered starting their own business.
- Fifty-five percent of respondents agreed with the statement that "although many corporations are downsizing many small businesses are being established or expanding, creating hundreds of thousands of jobs each year."
- When asked to choose among labor unions, big business, the Federal government, and small business, 68 percent said Small Business "is most honest," followed by labor unions with seven percent, the federal government with three percent and big business with three percent.
- When asked from the same list which one "cares about people like me," 59 percent said small business, followed by labor unions with 14 percent, the federal government with five percent, and big business with three percent.
- When asked which one "uses its influence to improve the community," 49 percent said small business, compared to 19 percent for big business, nine percent for the federal government, and eight percent for labor unions.
- When asked which one "will do the most to protect your job," 35 percent said small business, 30 percent for Labor Unions, nine percent for the federal government, and six percent for big business.
- When asked, "Over the next few years, who among the following will do the most to create jobs?", nearly one out of two voters (49 percent) chose small business. In comparison, the second highest was big business with 17 percent. The federal government was third with 16 percent, and labor unions were fourth with only seven percent.
- Half of the respondents surveyed believe that "the typical small business" has 11-50 employees. Twenty-four percent believe they have less than ten employees, 12 percent believe they have 51-100 employees, and eight percent believe that a small business has 101-5,000 employees.
- Respondents were asked to estimate the percentage of jobs in the U.S. that are provided by small business. Almost one out of four (23 percent) believe that small business provides 31-50 percent of all the jobs in the country. Small business created about two-thirds of net new jobs in the American economy since the early 1970s.
The small business community is not only an integral part of our economy, but is emerging as a potentially powerful political force. Voters view small business owners as hard working, community leaders. The respect and admiration that voters have for small business owners and the small business community as a whole will almost certainly carryover to the campaigns and candidates who take up their issues.
POLITICAL BENEFITS
There are obvious political benefits to addressing the issues of a constituency that comprises 46 percent of the electorate. By working for small business issues and causes , a candidate would not only become a "friend of the small business community" and possibly garner their vote, but also gain favor from the voters who respect and listen to the small business communities' opinions and endorsements.
- When given a choice between Candidate A who is supported by labor unions, trial lawyers, and environmental groups, and Candidate B who is supported by farmers, small business owners, and big business, three out of five voters (61 percent) would vote for Candidate B.
- When the voters who indicated that they would vote for Candidate B were asked why they would vote for that candidate, more than one out of two voters (52.1 percent) gave a response dealing with small business issues.
- When asked what the most important issue or action the government can take to help small businesses, the top responses were "tax breaks" (29 percent), "less interference/regulations" (14 percent), and "loans/financing" (14 percent).
- Fifty-five percent of voters agreed with the statement that "although many corporations are downsizing, many small businesses are being established or expanding, creating hundreds of thousands of jobs each year."
- Overall an overwhelming majority (89 percent) of respondents agreed that "Congress and the President should do more to help small business by cutting taxes, reducing government regulations, and balancing the budget." Sixty-one percent of the voters strongly agreed with that statement.
- Voters were asked if they would be more likely or less likely to vote for a candidate who they knew was supported by a specific group or organization. Sixty-four percent would definitely or be more likely to vote for a candidate who is supported by "small business owners and the National Federation of Independent Business."
- In comparison, only 28 percent would either definitely vote for or be more likely to vote for a candidate supported by "labor unions and the AFL-CIO." Forty-seven percent said they would be either less likely or definitely vote against a candidate with this support.
- The worst score by far was for "trial lawyers." A full 65 percent would be less likely or definitely vote against a candidate supported by "trial lawyers." A mere nine percent would be more likely or definitely vote for a candidate with their support.
- The voters who work for a small business were asked, "Who do you trust more to protect you in your current job?" Overwhelmingly, respondents feel that the small business owners (52 percent) are looking out for their best interests much more so than the Federal government (nine percent).
Voters within the small business community, as well as those outside of it, understand the issues concerning starting and growing a small business in today's economy. The voters know that in order to help small business we must (1) cut taxes, (2) cut red tape, and (3) balance the budget. These are the critical issues that a campaign must address if they hope to mobilize the small business portion of the electorate. Candidates who earn the support and endorsements of the small business owners and organizations will also gain valuable support from voters outside of the small business community who respect the opinions of small business leaders.
CONCLUSIONS
Small-business owners and the small-business community are a vital voter block that has yet to be tapped, both as a resource for garnering votes, and for the votes themselves. Small business owners and employees comprise a huge segment of the voting public. Their voting interests are inherently similar and can be used to mobilize them as a previously unrecognized constituency.
The voters in this country have an extremely high opinion of the small business community as a whole. They respect their hard work, community involvement, and their opinions. Small business' ability to influence voters is not limited to any one party, gender, or race do to a diversity that no other group can match.
Voters recognize the importance of small business to our economy, both on the local level and nationally. A majority of voters understand the benefits of expanding small business opportunities through tax cuts, reducing red tape, and balancing the budget. They will support a small business person as a candidate, or a campaign that receives the endorsement of the small business community.
Campaigns are constantly attempting to build coalitions and gain constituencies. Small Business is a natural constituency that has gone relatively unnoticed. That will change in the very near future and those that do not recognize the implications may very well be left behind. Small business is the edge that many campaigns are looking for in an election. The campaigns and candidates that recognize the potential of the small business constituency, and align themselves with the small business issue agenda, could effectively gain the votes that will make the difference in the election.
METHODOLOGY
The data highlighted in this report is taken from surveys conducted by Fabrizio, McLaughlin & Associates, Inc. of Alexandria, Virginia, and Penn and Schoen Associates, Inc. of Washington, DC. The Fabrizio-McLaughlin study was conducted among 1000 likely voters between June 12 and June 15, 1996 via telephone by professionally trained personnel. Respondent selection was at random within predetermined geographic units to reflect actual voter turnout in national elections. This survey of 1000 likely voters has an accuracy of plus or minus three percent at the 95 percent confidence interval. The Penn and Schoen study was conducted throughout the United States with 1211 individuals who voted in the 1998 presidential election. All interviews were conducted during November 6 through 7, 1996. The overall margin of error for the sample is nine plus or minus 2.7 percent at the 95 percent confidence level.
