We've had a number of positive economic indicators in recent weeks, but a new survey by the National Federation of Independent Business finds very small companies - that have 10 or less employees - are not terribly optimistic right now.
The reason? First and foremost, it's sky-high prices at the pump.
NFIB Jersey state Director Laurie Ehlbeck says "the high price of gasoline raises the cost of transportation, material, supplies, and it also discourages consumers from spending money right now…it really affects small business optimism, as far as if they're going to buy another piece of machinery or if they're going to add another employee - so it doesn't take a whole lot for an employer to decide to just wait…any time there's an increase in the cost of supplies or materials, that holds them back from even a little bit of growing."
She adds it won't take a whole lot to start to change the psychology of the situation - "I think the price of gas has to drop just a little bit - I think they have to know that the prices are not going to continue to go higher…also, a lot of small business people are looking to Trenton to see what's happening with other taxes, unemployment insurance tax, payroll taxes - I think right now the best way to put it would be a just wait and see mind-set… I think most small businesses have not seen enough improvement in our state economy right now to take the plunge and add more employees- to grow their business."
Ehlbeck also point out "the high cost of healthcare prohibits smaller businesses from offering benefits to their employees or actually hiring new employees - they're still nervous right now."
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