ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

US Small Businesses Rally Behind Minimum Wage Hike, Yet Grapple With Worker Affordability Concerns

A large number of small business owners think it's a good idea to increase the minimum wage but some are still against it.
PUBLISHED FEB 23, 2024
Cover Image Source: People hold signs as they attend a press conference at City Hall Park | Photo by Michael M. Santiago | Getty Images
Cover Image Source: People hold signs as they attend a press conference at City Hall Park | Photo by Michael M. Santiago | Getty Images

As we approach elections, understanding how Americans perceive the economy becomes increasingly important. While many communities are grappling with affordability crises, where low-wage workers struggle to afford basic necessities despite working full-time, small business owners are directly impacted by policy changes. As the minimum wage debate gains momentum, it is sure to provide insights into voter sentiment as November approaches. 



 

In various states and cities, minimum wage hikes have either recently occurred or are planned, with some jurisdictions surpassing federal standards to align with local living costs. According to the latest reports, a significant majority (61%) of small business owners endorse raising the minimum wage in their respective states. However, nearly half (50%) express concerns about the potential difficulty in affording necessary workers following such increases.

The survey, conducted among over 3,000 small business owners across the United States from January 22 to February 1, 2024, reveals an intriguing dichotomy: while supportive of minimum wage hikes, small business owners show apprehensions regarding their implementation.

Image Source: People hold signs as they attend a press conference at City Hall Park on April 10, 2023 in New York City| Photo by Michael M. Santiago | Getty Images
Image Source: People hold signs as they attend a press conference at City Hall Park | Photo by Michael M. Santiago | Getty Images

Recent backing for minimum wage increases from some business owners highlights expectations of bolstered local economies and improved employee satisfaction. Conversely, concerns persist among another cohort, particularly regarding potential profit reduction and limited hiring capabilities, especially for businesses operating on narrow margins.

The study also identified demographic trends in minimum wage support. Women, black individuals, those under 45, Democrats, and those in the arts/entertainment or non-profit sectors tend to favor such increases. Conversely, men, individuals over 45, white individuals, Republicans, and those in manufacturing or agriculture industries are less inclined to support them.

Image Source: People hold signs as they attend a press conference at City Hall Park on April 10, 2023 in New York City. New York Attorney General Letitia James was joined by labor union leaders calling on Gov. Kathy Hochul and lawmakers to raise the state's minimum wage to $21.25 from the current $14.20 | Photo by Michael M. Santiago | Getty Images
Image Source: People hold signs as they attend a press conference at City Hall Park | Photo by Michael M. Santiago | Getty Images

Small business owners exhibit mixed sentiments regarding the impact of minimum wage hikes on hiring. While half anticipate hiring challenges, nearly an equal share foresee no impact. Among those with recent job openings, a significantly higher proportion, believe that higher minimum wages would hinder rather than benefit their businesses.

Despite overarching support for minimum wage increases, concerns about their adverse effects on business viability persist among various demographic groups. Even proponents express apprehensions about potential profitability implications.

Image Source: Pexels|Photo by Anna Shvets
Image Source: Pexels | Photo by Anna Shvets

The grassroots campaign that advocates for a $15 minimum wage has been a prominent force in the socio-economic landscape for over a decade. Originating in the fast-food industry, the movement has garnered widespread support from low-wage workers, labor unions, and social justice activists across various sectors.

Driven by the recognition of the growing income inequality and the struggle of low-wage workers to make ends meet, the movement has mobilized efforts to push for legislative changes at both the state and federal levels.

While some businesses may adapt by adjusting pricing strategies, implementing efficiency measures, or reallocating resources, others may face greater challenges in maintaining profitability.

MORE ON MARKET REALIST
The nascent nature of the company prevented the sharks from investing in it.
1 day ago
Harvey seemed quite annoyed after the guest revealed her surprise and rightfully so.
2 days ago
Both Rick and his son Corey had a lot of luaghs while talking about this item for obvious reasons.
2 days ago
She was just happe to be with Drew Carey on stage, and perhaps did not expect such a big win.
2 days ago
The segment started with a couple of people entering the stage wearing cakes over their heads.
2 days ago
The valuation he asked for was as crazy as the outfit he wore, and the sharks said no.
2 days ago
The contestant's answer had no lewd intention but Steve Harvey made sure it did.
3 days ago
Fans of the gameshow are known to be vocal about their needs and this was just an example of that.
3 days ago
The guest stood firm at what he wanted and Harrison was forced to raise his low-ball offer.
3 days ago
The contestant was confident in his abilities and he steered his team to an impressive win.
3 days ago
The sharks could not believe what they had just witnessed but it sure was entertaining.
4 days ago
The guest said that she wanted $15,000 but had to settle for just a couple grand.
4 days ago
Fans of the show were shocked she was not able to get it right after coming so close.
4 days ago
Corcoran was confident that the entrepreneur would take her deal but that was not the case.
5 days ago
The host's expressions upon seeing the answers on the board were absolutely priceless.
5 days ago
The guest was a friend of the Harrisons and he turned out to be quite the negotiator.
5 days ago
The guest had an item that was presumably made in the pre-1800s era, which made it valuable.
6 days ago
She had asked for $250,000 when she came and she walked away with close to $400,000.
7 days ago
The showrunners must have had a storm on their hands when they were called out.
7 days ago
Steve Harvey burst out laughing when he heard that answer, as was the case in much of the round.
7 days ago