Study Finds Economic Confidence Gap in Midsized Businesses
A new study released by the ADP Research Institute reveals a gap in confidence for midsized businesses when it comes to the U.S. economy. The study shows that while only 15 percent of midsized businesses are confident that the U.S. economy will improve in the next 12 months, more than half, or 51 percent, expect they will see improvement in the industry in which they work.
“Midsized businesses, those that live between Main Street and Wall Street, are major drivers of the U.S. economy,” said Anish Rajparia, President of Major Account Services at ADP. “The concerns and trends highlighted in this report provide valuable insights into this significant, yet understudied business sector.”
The study’s findings point to the following top three concerns for midsized business owners and executives:
- 69 percent are concerned with the cost of health coverage and other benefits.
- 54 percent are concerned with health care reform legislation.
- 51 percent are concerned with the level and volume of government regulations.
Another key finding is that more than one-third of midsized businesses reported being fined or penalized for not complying with laws pertaining to how they manage their workforce. Of those fined, 58 percent did not know how much the fines cost and 47 percent did not know how many times they were fined.
“According to ADP internal data, in 2013 alone there were more than 19,000 proposed changes to laws and regulations that impact how businesses manage employees, so it comes as little surprise that the level and volume of government regulation made our list of top concerns three years running,” added Rajparia.