Anti-terrorist security measures not major financial concern for US small business owners

The financial impact of terrorism fears may not have dealt American small business as severe a blow as once feared, with 70 percent of small business owners saying they have felt no financial impact from increased security measures. The results are part of the Wells Fargo/Gallup Small Business Index, which measures business confidence and overall market conditions. Sponsored by Wells Fargo, the nation's leading small business lender, and conducted by the Gallup Organization, the Small Business Index provides insight into the views of US small business owners. The new index includes the first quarterly issue survey, Report on the Impact of Anti-Terrorist Security Measures on America's Small Businesses.

"We're very encouraged to see that small business owners are not experiencing a significant financial burden from changes in security measures as a result of terrorism," said Rebecca Macieira-Kaufmann, executive vice president and Small Business Segment Manager for Wells Fargo. "Given that the future of our economy is tied to the success of the small business sector, the results from the Wells Fargo/Gallup Small Business Index are another indication that small businesses are resilient and will continue to be a key driver of our economy in both robust and tough times."

The Index indicates that small companies investing in security improvements did not find them to be a major capital expense. One in four of the small business owners surveyed indicated that increased security measures have had only a minor negative impact on their companies, with only two percent claiming major negative impacts.

The Index shows how business owners invested in their immediate protection needs. Only 17 percent of small business owners said they have upgraded security measures for their employees; 28 percent said they upgraded security for data and records. The expense in both instances was perceived as a minor one by surveyed owners.

However, while the expense of security improvements was not identified as a financial burden, a significant minority of small business owners said terrorist threats have had a negative impact on other aspects of their business. Almost one in three said security has had a negative impact on the cost of business travel; 18 percent indicating a negative impact on its frequency. Similarly, 17 percent also reported a negative impact on both their access to customers and on freight shipping times.

•Date: 11th November 2003 •Region: N.America •Type: Article •Topic: Terrorism
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