US Shutdown Affecting Small Business

Association of Business Training
October 16, 2013 — 796 views  

The US government shutdown made it quite obvious that it won’t be bringing in good news for businesses for a while. The impact of the shutdown has already started making its presence felt in a negative way. A recent survey by Thumbtack.com, which is an online service, revealed that the shutdown is affecting small businesses and making them lose out on money, as well as work.

Impact of the Shutdown on Businesses

The survey questioned 100 business owners from all over the country asking them about the impact of the government shutdown. 46% of them said that their business was getting affected by the shutdown as they are facing constant cancellation of ongoing projects. Apart from that, they are also experiencing a low, as less work is coming in.

The survey also suggested that if the shutdown continues, it will damage 20% of the work of small business owners. Thumbtack.com Co-founder, Sander Daniels, said that the standoff in Washington is having an impact on many small businesses across the county in many unexpected ways. The businesses that have seen the most major impact include caterers, photographers, and DJs, as many weddings as well as high profile events are getting canceled due to the closure of federal venues and national parks.

Closed National Buildings Taking Away Work from Small Businesses

Daniels said that general contractors are also are having a tough time as they are able to book only a few jobs. Janitorial companies are also losing contracts in national buildings. Jon Monty who runs a family-owned cleaning business has the contract of cleaning the national buildings in Oakland. But recently when his cleaning crew went to one of the government buildings, they were not allowed inside. They were told that their service won’t be needed until the shutdown continues, and no one knows how long that will last.

Monty said that around 15% of his cleaning business is dependent on the government buildings. The rest of it comes from industrial and residential customers. He also mentioned that his company has already started searching for work in other areas to fill in for the gap created by the government shutdown.

Most of the businesses don’t feel they will be affected much by the shutdown. Around 55% of them said that they were unaffected by it. But still, most of them are considering the idea of putting off their major business investments for a while.

Small businesses gave out mixed reactions when asked about the cause of the shutdown. But they want the government to get back on track so that even they can continue with their business.

Association of Business Training