Small Business Owners Express Grave Concerns Over Potential Harris Presidency

A recent survey of 80,000 small business owners has uncovered a stark divide in economic outlook based on potential presidential election outcomes. The October 2024 Freedom Economy Index, a joint project by PublicSquare and RedBalloon, reveals that an overwhelming 87% of small business owners would consider closing their businesses if Vice President Kamala Harris wins the upcoming presidential election. In contrast, only 1.2% express the same sentiment if former President Donald Trump is elected.

This significant disparity in business confidence highlights the deep-seated economic concerns and political preferences among America's small business community. The survey's findings suggest that the outcome of the 2024 presidential election could have far-reaching implications for the U.S. economy, particularly in the small business sector which is often considered the backbone of American commerce.

The survey results paint a picture of a small business community grappling with economic uncertainty and inflationary pressures. A restaurant owner named Danielle, one of the survey respondents, expressed her frustration, stating, "If Harris wins, I'm just done. I can't live through this anymore." This sentiment appears to be widespread, with 83% of respondents indicating plans to expand and invest in their businesses if Trump wins, compared to only 1.1% if Harris is victorious.

The gender gap in economic impact is also notable, with women business owners reporting more significant revenue declines and expressing greater concern about potential staff reductions and inflation if Harris wins. This finding challenges the narrative of widespread women's support for Harris, particularly among female entrepreneurs.

The survey also reveals a pessimistic outlook for the upcoming holiday season, with over half of small business owners expecting Christmas sales to either decline or remain flat compared to the previous year. This projection could have significant implications for seasonal hiring and overall economic activity during a typically robust retail period.

Furthermore, the survey indicates a cautious approach to hiring, with 76.6% of small businesses neither hiring nor reducing staff, a substantial increase from 53.6% a year ago. This hiring freeze appears to be directly linked to election uncertainty, potentially impacting job seekers and overall employment rates in the coming months.

The economic forecast among small business owners is decidedly gloomy, with 57.4% believing the U.S. is headed toward a recession and another 32.8% citing too much uncertainty to predict economic direction. This pessimism is further reflected in their assessment of the Federal Reserve's handling of inflation, with 84% giving Chairman Jerome Powell and the Fed an "F" grade.

Michael Seifert, CEO of PublicSquare, described the survey results as "simply stunning," noting that small businesses are desperate to avoid a repeat of the economic challenges faced in the last four years. Andrew Crapuchettes, CEO of RedBalloon, emphasized the impact on the job market, stating that employers are "holding their breath" to see the election outcome.

The Freedom Economy Index survey, with its large sample size and 4% margin of error, provides a significant snapshot of small business sentiment in the United States. As the 2024 presidential election approaches, these findings underscore the critical role that economic policy and political leadership play in shaping the confidence and decision-making of small business owners across the country.