Small Business Owners Cite Paid Leave and Child Care as Critically Needed Investments in NEW survey

Over Three-Quarters of Small Business Owners Surveyed Faced one or more challenges due to a lack of investment in our care economy, such as a national paid leave program or child care supports

July 14, 2021

WASHINGTON, DC - Main Street Alliance released results of its latest pop member survey today showing critical need and support for investments in care infrastructure including paid leave and child care support as part of the recovery packages.

With 15 industries represented across 24 states, over 120 small business owners shared their challenges with the lack of a comprehensive, national paid leave program and affordable child care as well as priorities for investment in the upcoming recovery packages.

Highlights include:

Challenges:

  • 88% of respondents indicated they faced one or more business challenges due to a lack of affordable child care and a paid leave program that covers small businesses. The most commonly cited challenges were:

    • Competition with larger corporations for recruitment (48%)

    • Employee morale and stress  (45%)

    • Challenges with hiring or retaining employees (36%)

  • When asked about whether the lack of a robust national care infrastructure has personally affected you or your family, 63% indicated at least some challenges, and 40% said it was very hard or the "most challenging year ever."

Care infrastructure is a priority for recovery and investment:

  • When faced with the reality of the amount of women leaving the workforce this year, and asked what policies would most support hiring and retaining women workers: 

    • 89% supported investments in child care

    • 74% supported a paid leave program

    • This compared to only 24% who identified a phase out of Federal Pandemic Unemployment Insurance 

  • 67% said investment in care infrastructure was equally as or MORE important than investment in traditional infrastructure to support their businesses 

  • Among respondents who selected just one area, investments in our care infrastructure were identified as most critical to helping restart and drive income to business four times more than traditional infrastructure (81% care infrastructure vs 19% traditional infrastructure.) 

 Strong small business support for investments in care Infrastructure:

  • 89% of small business owners support a national paid leave program that provides up to 12 weeks of paid leave for employees to care for themselves or a loved one for birth or adoption of a child, or a serious medical condition.

  • 90% of small business owners support a major federal increase in support for child care so that low- and middle class family child care expenses are capped at 7%, child care workers are paid a fair wage and people are able to get back to work.

 Making corporations and the wealthy pay their fair share increases support for these programs:

  • 89% Supported a Paid Leave program statement on it’s own, and that increased to 90% when tied to a statement stating the program would be paid for "by a tax increase on the wealthy and large corporations so they pay their fair share."

  • Similarly, 90% support investments in child care, and that increased to 93% when tied to a statement stating the program would be paid for "by a tax increase on the wealthy and large corporations so they pay their fair share."

An overwhelming 83% supported the statement:
“A national paid leave program would set America up to recover from this recession, it would also take the financial burden off of my small businesses saving money on employee turnover, retaining good workers, and revitalizing America's Main Street.”

This data comes on the heels of a press call (WATCH) with small business owners across West Virginia, Arizona, and Maryland/Virginia regions elevating exactly why a lack of a national paid leave program has meant specific challenges for small businesses prior to and during the pandemic.

“This is an opportunity to support small businesses - to make it easier for people like me in Arizona and all over the country to start small businesses that thrive and to make caring for our families possible too. It’s win-win,” said Portia Jones, co-owner of Mad Skillz Salon and So Damn Good Cuisine in Phoenix, AZ.

“Recruitment and retention is a struggle. We’ve had employees leave for better benefits and higher pay from corporations,” said co-owner of Capon Bridge, WV butchery and restaurant Farmer’s Daughter, Kate Pacelli. “Retention of those skilled employees matters a lot to my business. I want our employees to feel taken care of, and not be afraid to take time off and lose wages. Butchering is a labor-intensive skill.”

“Until the emergency paid leave credits via Families First then the American Rescue Plan this was the only option unless your state had implemented paid leave,” said Aaron Seyedian, owner of Well Paid Maids, which operates across DC, MD, and VA. “Having employees across states and DC that have and have not implemented programs, I can say confidently that having a government paid leave program in place is much better for my business.”

The call also included a special message from Chair of the Senate Small Business and Entrepreneurship Committee Senator Ben Cardin (MD-D) who re-enforced, “The months and years ahead present us with a once in a generation opportunity to reshape our economy and to make it fairer and more equitable. It would be a shame to squander this opportunity. It's time for Congress to enact a national paid leave policy. It's good for workers, and it's good for business.”

It is time to invest in our care infrastructure. Small businesses are demanding this support. Programs like the paid leave and child care investments in The Build Back Better plans, including the American Families Plan will help ease the burden of high costs on working families - rewarding work, not wealth. No one should have to choose between family and work. It’s time to level the playing field for small businesses and invest in our care economy.

*All business owners are available for media follow-up. 

Media Contact: Sarah Crozier, press@mainstreetalliance.org


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