BizBuySell conducted a survey of more than 1,000 small businesses in the U.S. to determine the impact of the government shutdown and tax reform.
The survey found that while only 18% of small businesses were negatively affected by the shutdown, 40% of them still have not recovered. The businesses negatively affected were mostly those dealing with federal workers.
There were several factors that led to the negative experiences of small businesses owners. About 26% had fewer customers in their location because of closed government offices and 56% reported a decline in sales because federal workers could not purchase their services or products. Thirteen percent experienced loan delays from the SBA and 18 percent lost government contracts.
According to data from the Congressional Budget Office, the shutdown cost the U.S. economy around $3 billion in GDP.
On the issue of taxes, 33% said their taxes remained the same after the implementation of the Tax Cuts and Jobs Act, 13% said their taxes were higher and 22% said their taxes were lower. When asked about the effect of the tax reform on their business, 45% said it had no impact, 35% said it was positive and 20% negative. A higher percentage of men reported a positive impact compared to women, while a higher percentage of women said the impact was negative.