The survey, conducted by the Union Bank of California, also indicated that only half of small business owners in the state provide medical benefits to workers. Of those, 20% shifted costs onto employees in the past year, while 10% reduced overall health benefits.
Worker compensation insurance is also a concern for small businesses in the state, with 66% listing it as one of their top-three concerns. Ninety-two percent claim that the cost of such insurance either stayed the same or increased in 2004. Of those, 8% saw a decline in cost with 39% reporting that the drop was less than 10%.
The survey was conducted from January 10 to 21 by Union Bank’s Small Business Division and included responses from 1,941 small business owners.