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BizReport : Ecommerce archives : June 20, 2017

SMBs favor minimum wage increase - the question is how much

While most small businesses are coming down on the side of an increased federal minimum wage, the question is just how big a raise these small businesses could withstand without it hurting their bottom line. That's the word from a new Manta and BizBuySell survey.

by Kristina Knight

Researchers polled more than 700 small business owners, and found that while 47% of small business owners are in favor of increasing the federal minimum wage (40% are opposed to it), more than half of consumers (58%) say they would buy from SMBs more often if those businesses supported a federal minimum wage increase.

As to how much of an increase - about half of those in favor of a minimum wage raise say they would support it up to $15/hour, 20% say they would support a minimum wage hike to $10/hour, and 30% say they would support a hike to $12/hour

"Among small business owners and prospective buyers who said they endorse raising the federal minimum wage, our respondents said doing so would have a positive impact on the economy, arguing that larger paychecks bring more economic activity," said Bob House, President of BizBuySell. "Other small business owners who support a higher minimum wage suggested businesses that only pay the federal minimum wage are being financially irresponsible by staffing beyond their means. Some respondents said small businesses should concentrate staffing to a group they can afford to pay above minimum wage."

Other interesting findings from the survey include:

• Of those opposed, 64% say their business would suffer under a $15/hour minimum wage
• In April, Manta research showed 40% of SMBs pay 'far above' the existing federal minimum wage
• SMBs in construction and professional/business services were most likely to support a wage hike

The full survey results can be found here.

Tags: BizBuySell, federal minimum wage, Manta, minimum wage increase, small business, SMB tips, SMB trends

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