Many small businesses owners are becoming convinced that increasing the minimum wage across the board is necessary and doesn’t actually harm their businesses at all.
This is ironic to the common notion that small businesses by nature hate any increase in the minimum salary since this means additional cost to their business and may mean firing of workers.
But based on a report published at Bloomberg Business Week Thursday, many small businesses are becoming convinced that increasing the salary pay per hour rate will not only benefit the employees themselves but their small businesses’ profit as well by providing good services for their customers.
The issue stemmed from the recent proposal of President Barack Obama to increase the federal minimum wage from the current $7.25 to $9 per hour on or before the end of 2015.
But the government expects a firm opposition from America’s sizable 6 million small employers.
Considering all aspects in economics including the inflation rate, data would suggest that an average American who earns a minimum wage of $1.60 in 1968 experiences a better life than an average American earning a minimum pay at present time.
“Our women [business owners] who pay a living wage have an advantage over their larger counterparts who don’t,” Margot Dorfman, chief executive officer of the U.S. Women’s Chamber of Commerce was quoted as saying by the Bloomberg.
The chamber is an organization with 500,000 members; roughly 75 percent of them are owners of small business owners.
“Whether Obama’s proposal is high enough or the time frame is fast enough is the question,” Dorfman added.
Among the groups of small business owners who back the proposed policy on across the board pay increase include Main Street Alliance, the National Latino Farmers & Ranchers Trade Association, and the Greater New York Chamber of Commerce, among others.
But as expected, two of the country’s biggest small business organizations, oppose any form of increase including the National Federation of Independent Business and the National Small Business Association.
“If you artificially increase demand in the form of minimum wages, you’re going to suppress demand elsewhere, and that’s going to come directly from the employer’s side.” The International Franchise Association Vice President of Government Affairs and Public Policy Jay Perron was quoted as saying by the Bloomberg Thursday.
Perron said any raise in the minimum wage is just not included on the priorities of its members.