People hold signs as they attend a press conference at City Hall Park on April 10, 2023 in New York City.
Michael M. Santiago | Getty Images
As we enter an election year, Americans’ perceptions of economic health matter more than ever. Small business owners are often seen as trailblazers because of how acutely they feel policy changes, and understanding their concerns about inflation and the cost of doing business can shed light on how voters will respond in November.
Many states and cities have it Recently raised Or they are raising the minimum wage, with some setting requirements higher than the federal minimum wage to match the local cost of living. New data from First quarter of 2024 CNBC | SurveyMonkey Small Business Survey It shows that a majority (61%) of small business owners support raising the minimum wage in their state, even while half (50%) believe it would make it harder to provide essential workers to their businesses.
The survey, conducted of more than 3,000 U.S. small business owners from January 22 to February 1, 2024, highlights an interesting paradox, as small business owners expressed both support and concern about increasing the minimum wage.
Differences between generations, industries and politics
In recent months, Some business owners have expressed their support To increase the minimum wage in the hope that higher salaries in their communities will give potential clients more spending money, increase tax revenue that can be used to improve the local community, and increase employee satisfaction by meeting cost of living requirements. However, another faction of business owners is concerned that higher wages will hurt profitability — especially for companies where profits are already slim — and reduce their ability to hire entry-level workers.
In the CNBC|SurveyMonkey study, the groups most likely to support minimum wage increases are business owners who are women, Black, under 45, Democrats, or those working in the arts/entertainment or nonprofit industry. Younger small business owners are also more likely to believe that increasing the minimum wage will help their business.
The groups least likely to support minimum wage increases are men, those over 45, whites, Republicans, and/or those who work in manufacturing or agriculture.
Small business owners with job openings in the last three months at their companies are divided on their support for minimum wage increases: Just over half (54%) support the increases, while less than half (45%) oppose. Two-thirds (68%) also expressed concerns about their ability to hire new employees as a result of the wage increase.
Widespread concern about the potential impact on their business
In general, small business owners are divided on whether raising the minimum wage will impact their ability to hire new employees. Half (50%) believe the increase will make it harder to recruit, while just under half (49%) expect no impact. Notably, twice as many small business owners with job openings in the past three months believe a higher minimum wage will mostly hurt their businesses rather than help them (51% vs. 25%). Even proponents of increasing the minimum wage are concerned about the impact on their bottom lines, with women (45%), younger (58%) and black (46%) business owners expressing concerns about workers’ ability to afford costs despite being the groups most likely to . To support such policies.
Despite overall support for increasing the minimum wage, small business owners seem unsure how it will impact their own businesses. Only one in five (19%) small business owners believe raising the minimum wage would help their business, a startling statistic considering nearly two-thirds (61%) support it. In fact, 38% believe the increase will hurt their business.
These conflicting feelings among small business owners demonstrate the nuanced nature of this debate. For more than a decade, the Fight for $15 movement has called for the lifting of minimum wage laws across the country, and many Local communities face high costs of living. As more states and cities move toward raising the minimum wage, it will be interesting to watch how Main Street sentiment continues to evolve.