Scientific Opinion Poll Shows Small Business Owners Support Raising Federal Minimum Wage to $10.10

Washington, DC—A scientific opinion poll released today shows entrepreneurs support increasing the federal minimum wage to $10.10 per hour and agreed it will enhance consumer spending, which can increase the demand for small firms̢??‰? good and services and boost their businesses̢??‰? bottom lines while strengthening the economy.

The poll, conducted February 18-25, 2014 by Greenberg Quinlan Rosner Research on behalf of Small Business Majority, found 57 percent of small business owners support raising the federal minimum wage—up from the $7.25 an hour rate that took full effect in 2009— in three steps over two and a half years to $10.10 an hour and adjusting it annually to keep pace with the cost of living. What's more, 61 percent of small business owners in the retail/restaurant industries support increasing the minimum wage to $10.10.

While this issue has incited considerable partisan debate, it finds broad support among small business owners across a range of industries and political persuasions, showing small businesses do not view the issue through an ideological lens. The respondents were predominately Republican—with 47 percent identifying as Republican, 35 percent as Democrat and 18 percent as independent.

"We pay our employees just above the minimum wage right now, and while an increase to $10.10 would force us to do some number crunching and adjust a bit, I think overall it would be good for our business and help us compete," said Kris Kleindienst, co-owner of Left Bank Books in St. Louis, MO. ̢???As a locally-owned bookstore, our margins are pretty tight with competition from the big guys. If big businesses have to pay an increased minimum wage as well, it would be much easier for us to compete for a talented workforce. It would also put more money into the economy, and when the economy thrives, my so does my business."

More than half of small business owners (52 percent) agree that increasing the minimum wage would not only help the economy, it would make low-income consumers more likely to spend money, driving up demand for small businesses̢??‰? goods and services. In addition, 54 percent of respondents believe that increasing the minimum wage would help decrease pressure on taxpayer-financed government assistance that's needed to make up for low wages, as it would help people afford basic necessities that might otherwise be out of their financial reach. And more than a third (35 percent) say raising the minimum wage would help make their businesses more competitive because business competitors won't be able to undercut them on labor costs.

Additionally, a sweeping 82 percent already pay all of their employees more than the federal minimum wage, with 0nly 18 percent paying one or more of their workers minimum wage. Small employers believe it̢??‰?s not right that people working full time earn just $15,080 a year at the minimum wage, which is significantly lower than in the 1960s, adjusting for inflation.

"Small businesses' No. 1 concern is consumer demand. When the demand's there, businesses thrive. An increased minimum wage will inject more money into the economy, which will stimulate that demand. Small businesses understand it and support it," said John Arensmeyer, Founder & CEO of Small Business Majority. "By raising the minimum wage across the board, more Americans will have more money to spend at small businesses. This will help entrepreneurs create jobs, which strengthens the economy even more, creating an economic domino effect.̢."

"This survey confirms what we all already know," said Christine Owens, Executive Director of the National Employment Law Project. "Small business owners care about their employees, their communities and their local economies. They know that raising workers' wages is fair for workers and good for business."

For the full poll report, please visit: http://www.smallbusinessmajority.org/small-business-research/minimum-wage/small-business-support-increasing-minimum-wage.php

A recording of today's tele-conference is available here.