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Conan Knoll
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Jared Thompson
jared@smallbusinessforamericasfuture.org, (260) 797-2530

Small business survey: Citing cost as the main barrier to providing paid family & medical leave, majority of Main Street entrepreneurs seeking federal solution

National survey of 626 small business owners finds 65% provide some form of leave but cost is the most cited barrier to providing paid leave; 59% want a solution to paid family and medical leave and 71% say the federal government should have a role

Washington, D.C., August 24, 2021—A national survey finds most small business owners have some sort of leave policy because it is central to their ability to hire and retain quality employees, but providing paid leave presents financial challenges for businesses and most entrepreneurs would welcome a federal solution to providing paid medical and family leave. 

"Small businesses have taken great strides to incorporate formal and informal paid leave policies into their business operations, however, more is needed,” said Tiara Flynn, co-owner of Sumnu Marketing in Las Vegas, NV, and a member of the Small Business for America’s Future Small Business Council. “A comprehensive paid leave policy that covers all employers and implemented with the smallest businesses in mind will help business owners support and retain their workers." 

The survey of small business owners in Small Business for America’s Future’s network, fielded from July 16-30 with 626 small business respondents, found that 65% of small business owners offer their employees some sort of leave, with 68% of those offering paid leave. However, cost was the most cited barrier to offering paid leave (35%), informing their views on potential solutions. The survey also found:

• 59% of the small employers want to see a solution on paid family and medical leave, a number that rises to 81% support among Black small employers 
• Of those supporting a solution, 71% would like to see a solution involving the federal government, with 37% looking for a partnership between the government and the private sector
• Paid sick leave is most the type of paid leave offered most frequently by small businesses
• Black and Latinx small employers are most likely to offer leave, but are less likely than their white peers to offer paid leave
• 79% of small employers who offer paid leave of some sort see it as a business imperative to attract and retain quality employees
• Those businesses that don’t offer some sort of paid leave said it is harder to hire as a result
• Very small employers were the least likely to be aware of and use the paid leave tax credits
• AAPI and Black small business owners were respectively 20% and 11% less likely than the average in the sample to be aware of or report use of paid leave tax credits 
  

You can take a look at the survey results here.

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About Small Business for America’s Future
Small Business for America’s Future is a national coalition of small business owners and leaders working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize the nation’s 30 million small businesses to create an economy that works for them, their workers and their communities. Visit www.smallbusinessforamericasfuture.org. Follow us on Twitter and Facebook. #SmallBizAF.