Providing health insurance seems to be a big concern for owners of small- and medium-sized businesses. The costs and reforms associated with health care weigh heavily on the decisions made for these businesses. More than 20 percent of businesses state that costs associated with health care for their employees are a concern, while around 14 percent were concerned about health-care reform.

Being Cautious

 The same business owners are feeling more optimistic about the New Year due to financial improvements throughout the past year. However, the weight of health-care reform is hanging over them when it comes to offering insurance for all employees. This new change makes them cautious on paying for particular health-care costs. In fact, 14 percent of business owners are planning to reduce their staff in order to increase their payrolls and reduce spending.

Their Top Concern

 A lot of business owners have a top concern when it comes to health-care reform. They understand why it needs to be done, so they have implemented ways to abide by the reforms.

•  One in five businesses are not sure what action they will take to correct the problem, while more than 15 percent say they are going to be taking no action.
• More than 20 percent are going to keep their workforce under 50 employees in order to avoid the employer mandate.
• Only 8 percent say they are going to offer health insurance due to health reform.

Other Trends

 On top of the health-insurance problem, small and medium businesses are also stressed out about:

•  Retirement savings – A lot of business owners do not know where to start and what they need in order to retire comfortably at the end of their business endeavors. They believe they are saving enough.
• Having to work with financial professionals – Close to two-thirds of all business owners are working with a professional to help them with their business finances. This includes the benefits that they get from their employees, as well.
• Their families – If these businesses were asked what is behind all of their success, they would likely say their spouses or families. A lot of times these smaller businesses are handed down to the next generation, which means that they continue the family tradition and are likely to stay smaller in size.