Government Shutdown Creates Uncertainty for Small Businesses

For Immediate Release: 
Saturday, January 20, 2018

Statement from Small Business Majority Founder & CEO John Arensmeyer on why the federal government shutdown will impact small business owners’ bottom lines


Congress dealt a serious economic blow to small businesses when it failed to reach an agreement to avert a federal government shutdown, primarily because lawmakers inexcusably failed to do their jobs and come up with a long-term plan to keep the government running or resolve issues that have strong bipartisan support. Every time the government closes up shop it diminishes consumer confidence and creates a huge amount of uncertainty, which can wreak havoc on small business owners’ bottom lines.

The shutdown will be particularly hard on the many small employers that are government contractors, as nearly one-quarter of all federal contracting dollars go to small businesses. Moreover, all small businesses in regions with large numbers of government workers as customers will suffer.

In particular, lawmakers’ failure to reach a long term solution for Deferred Action for Child Arrivals (DACA) not only contributed to the shutdown, but continues to hurt our small business community. Immigrants, and particularly young people like the Dreamers who have been protected under DACA, are the lifeblood of entrepreneurship–they work at small businesses, start new ventures at twice the rate of the others and contribute to our nation’s economic success. To make matters worse, this disagreement over DACA also leaves essential programs like the Children’s Health Insurance Program (CHIP) in limbo even though it has strong bipartisan support.

When our leaders shut down the government, small businesses end up paying the price. Lawmakers must get to work quickly to resolve their differences, reopen the government and find a long-term solution for DACA.


About Small Business Majority

Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. We actively engage our network of more than 55,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.

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