LOS ANGELES--(EON: Enhanced Online News)--According to a poll conducted by Pepperdine University’s Graziadio School of Business and Management, privately held businesses are split on the issue of a government shutdown, with 48% saying they support a temporary shutdown while 42% oppose it. Without new spending authority from Congress, most U.S. government agencies would have to cease operations on October 1.
“The fact that nearly half of business owners are willing to wait out a government shutdown suggests that businesses are highly dissatisfied with the circumstances in Washington”
Blame for dysfunction in Washington is spread across the board, with 43% of businesses criticizing both Democrats and Republicans equally. Twenty-eight percent of businesses say the blame lies primarily with Democrats and 27% blame Republicans.
“The fact that nearly half of business owners are willing to wait out a government shutdown suggests that businesses are highly dissatisfied with the circumstances in Washington,” said Dr. Craig R. Everett, director of the Pepperdine Private Capital Markets Project at the Graziadio School of Business and Management. ”Clearly, many business owners desire the stability of a more permanent resolution to the nation’s recurring fiscal problems.”
At issue is whether to increase the federal debt limit, impose tax increases and delay funding for and implementation of the Affordable Care Act (ACA). Republicans have also proposed that since the ACA’s business mandate has been delayed for a year, the individual mandate should also be delayed for the same period. A recent study by the Bipartisan Policy Center found that the U.S. could begin defaulting on its obligations from October 18 through November 5 if the debt ceiling is not increased.
- 30% of businesses support a shutdown for one day with 81% saying it would have no impact on their operations
- 18% of businesses support a shutdown for more than six months, 14% support a shutdown for one month
- Concern over shutdown grows most between two weeks to one month (12% jump in businesses saying they would be negatively impacted)
- 24% of businesses say a shutdown of two weeks would have a negative impact on their company or the companies they invest in or advise
Impacts of a shutdown for one month:
- 60% of businesses say it would have a negative impact on the economy
- 27% of businesses say it would negatively impact hiring plans
- 14% of businesses say it would force them to lay off employees
- 49% of businesses say a shutdown of six months would negatively impact hiring plans
- 37% of businesses say a shutdown of six months would force them to lay off employees
The survey from Pepperdine University’s Graziadio School of Business and Management included 1,387 responses collected from August 30 – September 5, 2013. This poll is part of the Pepperdine Private Capital Markets Project at the Graziadio School of Business and Management, the first simultaneous, comprehensive, and on-going investigation of the major private capital market segments. The Project currently engages in multiple survey research initiatives and publishes an annual Capital Markets Report, an annual economic forecast, the PCA Index Quarterly Report in partnership with Dun & Bradstreet Credibility Corp. and Market Pulse Quarterly Report in cooperation with the International Business Brokers Association and M&A Source.
The research seeks to understand the true cost of private capital across market types and the investment expectations of privately-held business owners; providing lenders, investors and the businesses that depend on them with critical data to make optimal investment and financing decisions, and better determine where the opportunities to create lasting economic value may be realized. Download reports and find more information at http://bschool.pepperdine.edu/privatecapital.
About Pepperdine University Graziadio School of Business and Management
Founded on the core values of integrity, stewardship, courage, and compassion, Pepperdine University's Graziadio School of Business and Management has been developing values-centered leaders who advance responsible business practice since 1969. Student-focused, experience-driven and globally oriented, the Graziadio School offers fully accredited MBA, Masters of Science, bachelor's completion and non-degree executive business programs for business professionals, entrepreneurs, managers and senior executives at all stages of their professional and personal development. For more information, visit: http://bschool.pepperdine.edu/newsroom