Small Businesses Remain Concerned About the Impact of Obamacare

Survey:  40 percent are unsure how Obamacare will affect their business

December 13, 2013 – NEW YORK–(BUSINESS WIRE)–As individuals continue to navigate confusing messages and faulty websites seeking new insurance, small business owners are also struggling to understand the impact that the Affordable Care Act, known as Obamacare, will have on their day-to-day business operations, according to a recent survey* by Merchant Cash and Capital (MCC), a leading alternative financing company for small businesses.

According to the survey of 542 small business owners, there is a sense of concern and doubt among them when it comes to how Obamacare will affect their business in the coming year. Nearly one third of respondents believe the Act will increase operational expenses and 40 percent aren’t sure how it will impact their business. In addition, one in four respondents said they will halt any growth initiatives in the near future as a result of the Act.

“Small business confidence is critical to the progress of the current recovery,” said MCC CEO Stephen Sheinbaum. “While we see that the economy is improving and our customers are charting growth, it is clear from the survey that continued confusion surrounding the rollout of Obamacare could potentially temper this positive momentum.”

Job Creation

Survey respondents also expressed concern about job creation and retention, with one in five saying that they will put new hiring on hold as they wrestle with increasing operational expenses. Of those who said their expenses would increase due to the Act, 29 percent said they will cut costs by decreasing number of hours worked for certain employees.

Employer Mandate

The survey also measured small business owners’ views about the employer mandates under the Act. Taking advantage of the program will be a difficult undertaking for some small businesses to do because of coverage under personal health insurance plans and the lack of desire or incentive to provide it. The majority (70 percent) of respondents said they currently have personal health insurance and 40 percent don’t currently offer health insurance to employees and don’t plan to.

SHOP Exchange

Small business confidence is critical to the progress of the current recovery

The survey revealed a small portion of small business owners who are already planning to sign up for the program. Nine percent of respondents said they don’t currently offer insurance but plan to use the SHOP exchange to provide employees with coverage. And, 6.4 percent of respondents said they currently do offer health insurance to employees, but will switch to a new health insurance plan provided through the exchange. However, in total, less than 20 percent of respondents said they will plan to use the SHOP exchange to provide insurance for their employees.

Sheinbaum adds, “The large population of self-insured small business owners is reluctant to provide coverage through the SHOP exchange, as are the owners who offer insurance and don’t offer insurance. These findings shed important light on the education and understanding needed around what Obamacare means for the future of small business confidence and growth.”

Survey findings and the Affect of Obamacare on Businesses info-graphic data verified and audited by Premier Consulting Partners via First National Administrators.

*Fielded prior to the delay of the Affordable Care Act’s implementation for small businesses

About the survey

Merchant Cash and Capital conducted the online survey of 542 small business merchants (revenues under $10 million annually) in November 2013.

About Merchant Cash and Capital
Since 2005, Merchant Cash and Capital, LLC, has been one of the nation’s business cash advance funding leaders. MCC has provided more than $600 million in financing to over 12,500 distinct customers and a total of over 27,000 advances. For more information about MCC and its innovative small business-focused funding programs, please visit us at or call 1-866-792-9366.

About Premier Consulting Partners and First National Administrators
Premier Consulting Partners and FNA partner to design health care reform compliant benefit plans and products for companies of all sizes. For more information about the Affordable Care Act and Benefit Package Planning from Premier Consulting, please visit or call 516-358-3872.