The election is now decided but the “fiscal cliff” is looming. And, that has some local business owners taking a wait-and-see attitude toward the future of the economy.
The cliff could mean impending tax increases and government spending cuts, if the President and Congress don’t come to a resolution once the Bush-era tax cuts expire at the end of the year. As a result, some local business owners remain cautious about what the next few months might mean for business.
Local entrepreneur Shaun Emerson, founder of Project Boost, said he thinks it is still too early to know what the election results will mean for business, but he believes that politics will come into play.
“I think there are some things definitely clearer, the repeal of the health care law won’t go through and as it is it will definitely have an impact for businesses and will increase costs. Will it be offset with growth opportunities? We will have to see.”
The election made some things clearer, and Emerson said hopefully that would relieve some uncertainty among consumers who may have been waiting for the election results to spend money.
He is also hopeful that the President is more focused on helping small business, he said.
“I would be saying the same thing if Romney won,” Emerson said. “It’s one thing to run for office, another to lead.”
For Jill Foucré, owner of Marcel’s Culinary Experience, this was her first election as a business owner, so she wasn’t sure what to expect.
Business was a little slower during the month of October leading up to the election, she said, adding that talk in the trades was that uncertainty leading up to an election sometimes makes people more cautious with spending.
“Once the election is over there is some certainty,” she said. Hopefully, now that the election is over, she said, people are feeling good that they know that the choice was made and they can move on.
Expectations on holiday spending are strong, Foucré said and all the industry experts say things are looking positive.
Rich Ducar said he hopes the parties can find a way to compromise, particularly with the “fiscal cliff” looming.
Ducar, the owner of The Bike Shop in downtown Glen Ellyn, is in a slower sales period. But, he said until things play out in Washington he will probably be a little more conservative when placing orders.
His sales typically are a little slower until December when it beings to pick up again. He said he will just have to wait and see what customers call him about and what they ask for.
While he has already placed future orders, what items get delivered will depend on what producers make. If the bike and parts companies are feeling concerned about the economy they may not make produce as many products or fill as many orders, which could leave business owners with a smaller inventory.