A recent National Federation of Independent Business survey found that 72 percent of small business owners would like to expand their operations or add employees during the next five years. However a host of challenges, such as changing regulations, wavering consumer confidence and an uncertain economic climate, are holding them back. The Business Record talked to four professionals in Des Moines’ small business community about what they thought was the biggest problem affecting small businesses today.

What is the biggest challenge facing small businesses today?

Fred Buie
Owner, Keystone Electrical Manufacturing Co., chairman, Iowa Association of Business and Industry board of directors

“The biggest challenge, in broad terms, is growing their businesses in a profitable way. This includes a large spectrum, including having the means of tapping into new markets, having the operational infrastructure to produce greater volume and having the capital to do so. These three areas are what I hear most often.”

Meg Fitz
Vice president, regional business development for the Greater Des Moines Partnership

“Small business owners are feeling more optimistic. We are seeing an increase in local employment and spending, but if there’s any one thing standing between small business and growth, it’s uncertainty in how to plan and forecast. If we had a bit more consumer confidence, I think the floodgates would really open.’

Jim Heckmann
State director, Iowa Small Business Development Centers

“Consumer confidence hasn’t rebounded enough yet to see the pickup in the economy that we should be seeing. And so, small businesses facing that conservative attitude toward the consumption that goes along with consumer confidence is a problem. They’re not seeing the markets bounce back as fast as they’d like them to.”

Joe Folsom
Des Moines district director, U.S. Small Business Administration

“Two things come to mind. One of the largest problems is access to capital or additional access to capital. As the economy continues to move into recovery, businesses are having a hard time coping with changes in the lending environment. It really requires having a better understanding of lenders and how to meet their expectations. We always tell businesses to approach it as a sales pitch. However, the second problem is affording and accessing health care so they can attract and retain top employees.”