Imagine if small business owners were like teachers who could assign grades. Now imagine if business owners could assign grades to the federal government. What do you suppose those grades might be?

As it turns out, no imagination is required.

The Goldman Sachs investment banking company recently surveyed a total of more than 1,800 small business owners in 48 states, asking them, among other things, to assign letters grades to the federal government.

The results are instructive.

Fully 70 percent of the small business owners who participated in the latest 10,000 Small Businesses Voices survey gave the federal government a C or below grade for the effectiveness of its programs, services and tax credits available to small businesses. At 32 percent, the biggest proportion of small business owners assigned a C, but a total of 38 percent assigned D or
F grades. While 14 percent assigned a B, just 2 percent gave the federal government an A for effort.

Moreover, 85 percent of small business owners gave the federal government a C or below for marketing and communicating about programs, services and tax credits available to small businesses. While 35 percent of owners offered a C, a total of 50 percent assigned a D or F. While 11 percent gave a B, just 1 percent gave an A.

The federal government received predominantly poor marks on access to capital, technical assistance and entrepreneurial development and help with contracting assistance and support. The marks were better for disaster assistance and relief programs.

In addition to grading the federal government, the survey asked small business owners about other issues.

Asked about the economy, 50 percent of small business owners rated conditions fair and 25 percent poor. While 18 percent deemed conditions good, nobody went so far as to say they were excellent. In addition, 55 percent said they expected to experience a recession within the next year.

Asked to identify the most significant problem facing small businesses, 35 percent cited difficulty finding and retaining qualified employees. Another 23 percent cited inflation, 10 percent access to capital and 6 percent interest rate increases.

Still, business owners remained remarkably upbeat — apparently despite the federal government and economic challenges.

Fully 68 percent of owners said they were optimistic about the financial trajectories of their businesses in 2023, while 29 percent said they were pessimistic. A total of 89 percent of owners said they plan to create new jobs or at least maintain staffing. And 60 percent said they expects profits to increase this year.

Phil Castle is editor of the Business Times. Reach him at 424-5133 or phil@thebusinesstimes.com.