Small Biz Has Iraq on Its Mind

A new poll says the war is the top issue among business owners when it comes to determining their vote, more so even than health care

By Karen Klein

Small- and medium-size business owners identified health care, jobs, and inflation as their biggest business concerns, but the war in Iraq will be top of mind when they go to the polls on Nov. 2, according to an online poll sponsored by Interland, a Web-hosting and online-services company that caters to smaller outfits.

The survey was given to leaders of companies with 500 or fewer employees during the first two weeks of October -- when President Bush and Senator John Kerry were meeting in their final two debates. Of the 530 participants, 86% reported under $1 million in annual sales, and 81% said they had five or fewer employees.


  When asked to identify the three most important issues facing small- and medium-sized businesses in the U.S. today, 65% named health care, 34% chose jobs, and 30% identified inflation. But when asked to identify the "most important issue driving how you will vote in the upcoming Presidential election," Iraq was the top answer, with 23% pinpointing it as most important, followed by terrorism with 19%, and health care at 18%.

The focus on international troubles over domestic business issues doesn't surprise Roger Herman, CEO of Herman Group, a Greensboro (N.C.) consultancy and publisher of the weekly Herman Trend Alert. "One word describes the problem: uncertainty," he says. "Small-business owners hate uncertainty." Confusion over what the future will bring means small-business owners can't confidently expand, count on absent National Guard employees to return to work promptly, or take advantage of opportunities that have arisen due to the improving economy, Herman says.

The survey didn't ask participants how they planned to vote in the election. It did, however, ask, "Which candidate will be best for your business?" Fifty percent said Bush, while 45% pointed to Kerry, and 5% gave a thumb's up to Ralph Nader. When asked which political party they feel is most able to help small- and medium-sized businesses succeed, 44% named Republicans, and 40% said Democrats, a difference within the survey's four-point margin of error.


  Although national polls show a majority of Americans believe President Bush is the stronger candidate when it comes to protecting the country from terrorism, Herman says small-business owners' uncertainty about security doesn't necessarily mean they'll vote for the incumbent. "It cuts both ways," he says. "Some that I have talked to are supporting Bush because they feel it's better to stay the course and keep the same commander in place for the future. But others say they don't believe Bush is an effective leader, and they don't agree with some of the people who surround him."

Sami Jajeh, a principal at DemandG, a marketing consultancy based in Atlanta, says personal considerations like security will outweigh business concerns when he goes to the polls next week. "There are three principals in our firm," he says. "One leans left, one leans right, and one is in the middle. Given the environment today, it's less likely that we're going to vote mainly on business issues."

Yet David Pearce Snyder, a trend analyst and futurist based in Bethesda, Md., says he doubts that most small-business owners will put aside business issues in this year's election. "I've traveled the country and talked to small-business owners for 20 years, and right now they're worried about the economy and health care like crazy," Snyder says. "The war is a hot emotional topic, but it's hard to believe small-business people are really going to make that their primary issue. They tend to vote their wallets. For these people, it's still 'the economy, stupid.'"


  The survey also asked about sources of political news. A somewhat surprising 34% of respondents rely primarily on the Internet for national political information, despite the fact that 43% reported that they don't have a company Web site. TV was the second-most-cited political news source, at 26%, with newspapers at 18%, radio at 7%, magazines at 3%, and 12% saying they don't use the media for national political information.

Those surveyed were also asked to identify political Web sites they had visited in the past two months. A majority -- 57% -- said they hadn't visited any. Of those who had, sites sponsored by the candidates outperformed all other choices given. Some 16% selected, 15% said, 13% pointed to (the site that distributed the This Land political Web cartoon), 12% reported, 11% said, and 4% selected (the site of the Republican National Committee).

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues

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