The February edition of the Freedom Economy Index, a joint survey by PublicSquare and RedBalloon.work covering over 80,000 small businesses, reveals significant economic pressures affecting both employers and employees. Nearly 4 in 10 small business employers reported that 30% or more of their workforce holds second or third jobs, highlighting how inflation has eroded wages and spending power, forcing many to seek additional employment just to survive.
The survey findings show a pronounced split between newer and established businesses regarding multiple job holding, with younger companies experiencing higher rates of moonlighting among employees. This economic strain coincides with continued job mobility, as 39.7% of employers indicated that the Great Resignation trend persists with robust job-hopping, while only 11% reported that employee tenure has settled down in the current uncertain environment.
Geographic disparities emerged as a critical finding, with California small businesses expressing particular dissatisfaction. Only 13% of California businesses are happy with their location, while 67% are either planning a move, considering relocation, or want to move but cannot afford the costs. Nearly a third feel trapped in their current location despite wanting to leave, reflecting what researchers described as a Hotel California scenario where businesses can check out but cannot leave due to financial constraints.
Crime concerns also significantly impact small businesses, with over 70% reporting that crime has either increased significantly (32.2%) or slightly increased (38.2%) over the past 12 months. In response to crime, one in four businesses have either closed locations, moved, or considered moving, though most have sought alternative solutions to address security concerns.
When asked about priority issues for President Biden to address, 46.1% of small business owners identified US border security as the most important concern. Other issues included government spending and debt (13%), election and government integrity (10.2%), inflation (2.8%), and foreign policy matters including Ukraine, Israel, and China (1.7%). The survey, conducted from February 6-9, 2024, with 840 respondents, has a margin of error of +/-3.0% at the 95% confidence level.
