Brian Miller, CFE, COO of The Entrepreneur’s Source, a career and franchise business coaching company with more than 230 offices in the United States and Canada, and COO of AdviCoach, the premier source for business coaching and advisory services for small to mid-sized businesses, weighs in on the fight over the debt ceiling and spending cuts and its impact on the franchise and small-business communities.
“This fight is shaping up to be an Armageddon of congressional battles, and Main Street businesses aren’t quite in the clear,” said Miller. “The fight over individual tax rates may be over, but now both sides of the political isle will have to wrestle with reaching the debt limit ceiling, sequestration and the need for government spending reductions.”
As an advisor for a number of franchises and small businesses across the United States, Miller adds that, “Franchises and small-business owners are starting to hold back on investments, new equipment and hiring because of uncertainty over government spending and the debt ceiling battle, which will have an immediate impact on the economy. What’s more is there may be an even greater impact as consumers spend less due to the elimination of the payroll tax holiday, as well as recent tax rate increases from the fiscal cliff legislation.”
Miller continues: “Uncertainty over pending regulations and a fragile economy is causing employers to take a wait-and-see approach on hiring full-time workers. Consequently we’re seeing a shift to a part-time work force in America. The small-business and franchising community is a major vehicle for creating jobs and growth in this economy, but the new health care laws are forcing major players in the industry to pull back and rethink essential business strategies just to stay afloat. We’ll continue to see slow growth if we can’t make long-term solutions that make the United States fiscally more stable. Without economic growth, it’s hard to see a path out of our current economic woes.”