Paychex Poll Reveals the Government Shutdown Negatively Impacted Business Outlook for Nearly One in Five Business Owners

 

Congress and President Trump reached a temporary deal on Friday, January 25, to end the month-long government shutdown, but the country faces lingering uncertainty about the economic implications of this extended budgetary standoff.

Paychex, Inc., a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services, surveyed 300 business owners with 100 employees or less from January 22-24, asking how the shutdown impacted their overall business outlook, as well as if and how their business was affected by the government shutdown

How did the shutdown impact business sentiment?
According to the research, 19 percent of business owners said the shutdown had a negative impact on their business outlook. Despite the length of the shutdown, the future outlook for the majority (68 percent) of business owners was unaffected. Meanwhile, 13 percent reported that the shutdown had a positive impact on their business outlook.

How many businesses were impacted by the shutdown?
The Paychex survey found that 21 percent of business owners were directly impacted by the shutdown. The remaining 79 percent were not impacted. Of those experiencing the effects, the decrease in federal worker customers had the largest impact (41 percent), followed by:

  • Payment delay from government contractors whose services their businesses rely upon (33 percent)
  • Inability to apply for a Small Business Administration (SBA) loan (29 percent)
  • Awaiting approval on an SBA loan application submitted before the shutdown (24 percent)
  • Suspension of data services regularly provided by the federal government (22 percent)
  • Inability to access E-Verify (17 percent)

“We’re encouraged from an economic standpoint to see that the government shutdown did not impede business sentiment for many, and most of the owners we surveyed were able to conduct business as usual,” said Martin Mucci, Paychex president and CEO. “Though many businesses weren’t affected, we know that some are still facing significant challenges due to the shutdown. Our advice is to stay informed by talking to financial advisors and other trusted business partners about how to manage cash flow disruptions and preparing for a second shutdown if the temporary resolution runs out on February 15 without a permanent agreement in place.”

For Drew Boling, owner of Custom Vehicle Upfitters, which sells and installs emergency vehicle equipment to government agencies, the shutdown impacted his bottom line.

“We have clients that have received their products and services but could not pay for them during the shutdown,” said Boling. “We were also not getting any new business from affected agencies. In addition, we are in the process of buying a new building, and part of the purchase will be funded through an SBA loan. We have been told that this loan could take twice as long as normal because of the shutdown.”

About the Survey 
Paychex polled 300 randomly selected business owners with 100 employees or less. The survey was administered by Bredin, a third-party research firm, between January 22, 2019 and January 24, 2019 and yielded a +/- 5.66% margin of error.

 

 




I want to grow my online platform to create awareness about ethical consumerism, environmentalism, and the plant-based lifestyle. My main mission is to share information that empowers people to make better choices and create a VEG NEW WORLD :)


Your support is vital and is helping me share the collected information with thousands of readers and viewers. I try to deliver exclusive stories and relevant content in a challenging commercial environment. Your contribution helps me to cover the costs that my service requires. Please consider contributing (no matter how small) to keep the information flowing so you can remain informed and have life changing interviews and stories to share.

Related articles

New Research Highlights the Impact of Lifestyle and Diet on Hematologic Care

Studies Highlight the Impact of Lifestyle, Diet, and Environment...

Celebrate the Vegans in Your Life with Thoughtful Holiday Delights Beyond Just Salad!

  Food Empowerment Project Launches Holiday Recipe Guide Featuring Veganized...

Top K-Beauty Brand ‘MDP+’ Debuts 4 New Products in the U.S. Market

  MEDIPEEL Expands U.S. Presence with Launch of Four Innovative...

Fill Your Stockings with Skincare Essentials!

  Pamper Her This Holiday Season with Thoughtful Skincare Stocking...
Betty Tűndik
Betty Tűndikhttps://vegnew.world
Hi everyone! Nice to e-meet you! Here are a few things you should know about me. I am a conscientious, open-minded, adaptable to new experiences, and ambitious Business Development Manager with a Bachelor's Degree in Economics - Banking, Finance, and Accountancy. Through my studies, I've also obtained many naturopathic and nutrition degrees as well. Part-time jobs have added marketing, network marketing, event management, and store management skills to my experience throughout my career. Throughout my career, I have also been a Hotel Manager and owned a Bar/Restaurant & Internet Cafe. My online marketing and social media interactivity experience was gained when I and my husband started a business with an online/organic webshop & healthy lifestyle consultancy. I've improved my English at Cambridge Academy of English - 2003, in Cambridge. I live a conscious lifestyle, and try to protect the ecosystem. Animal lover and capable of helping others without judgment or negative reactions, this is thanked my knowledge in holistic therapies and the naturopathy courses I've followed. I cannot leave for my spiritual growth and the continuous development in alternative and holistic therapies, so I'm learning at Kyron School of New Consciousness, receiving a Bio Energo-therapist diploma. Thanks to all my experiences I've decided to venture into publishing and writing, while also continuing to learn many new things daily. I hope you enjoy reading my hand-picked news and check back for my weekly articles.