For the first time ever, we're uncovering the political face of the small and mid-size business market and providing complimentary access to the report. To gather our findings, The Business Journals surveyed a national sample of small and mid-size business owners. Within the report, we'll share: • The political make-up of the SMB market • Key differentiators between political parties • Profile characteristics of political affiliation • Compare and contrast of concerns across business and personal issues

2. Page
Research Method 3
Executive Summary 4
Importance of the SMB Market 5
Political Affiliation 6
The Issues 12
Conclusions 20
TABLE OF CONTENTS
2

3. 2016 RESEARCH METHOD
3
• 1,366 interviews
• Businesses with 5-499 employees
• Owners, C-level executives, key
decision makers
• Phone  internet interviews
• Fielded through January ‘16
Nationally representative
study

4. EXECUTIVE SUMMARY
4
SMBs have local influence and national economic power. As a group, they account for
roughly 7.6M businesses and make up 46% of the GDP. With 89% of SMBs generating
sales locally, decisions and policies impacting their communities and businesses are of
crucial importance.
• SMB owners consist largely of Republicans, over indexing the US population at 148.
• Democrats are the clear minority, making up 19% of SMBs.
• Democrats fare worse in annual sales…
• Average annual sales of Republican-owned SMBs are $1.1 million higher than businesses
owned by Democrats, and $2.9 million higher than businesses owned by Undecideds.
• …but are more confident about the economy.
• Three quarters of Democrats believe the economy will improve in the next two years.
• Republicans and Democrats are both politically active, but use different platforms for making
their opinions heard.
• Democrats are significantly more likely to sign a petition, while Republicans are more likely to
serve on a board.
• Democrats and Republicans share business and personal concerns, but prioritize them
differently.
• Democrats are more focused on attracting new customers and having enough money to retire,
while Republicans are more focused on the cost of health insurance and employee benefits.

5. THE IMPORTANCE OF THE SMB MARKET
5
• Small and mid-sized businesses* account for 46% of the GDP.
• SMBs comprise 98% of all identified exporters; and 97% of all
identified importers.
• SMBs in America account for 54% of all U.S. sales.
• SMBs provide 55% of all jobs.
*Defined by Census as businesses with under 500 employees
Sources: Small Business & Entrepreneurship Council: Small Business Facts and Figures (sbecoucil.org) – sourced from Census bureau; Small Business
Association: Small Business Trends (sba.gov); Small Business GDP: Update 2002-2010, private non-farm GDP; Census Bureau Statistics of U.S. Businesses

6. 6
POLITICAL AFFILIATION

7. NEARLY HALF OF SMB OWNERS ARE
REPUBLICAN; OVER ONE-THIRD ARE
UNDECIDED
7
Sources: MRI 2015 Doublebase and The Business Journals SMB Insights 2016
“Politically, do you consider yourself ….” ; Undecided includes those who identify as Independent, or selected ‘Other’ or ‘None’
*Indexed versus Total U.S. Adults 18+
Political Party Affiliation
Democrat
19%
(50 INDEX*)
Republican
46%
(148 INDEX)
Undecided
35%
(113 INDEX)
TOTAL SMB OWNERS
Democrat
38%
Republican
31%
Undecided
31%
TOTAL U.S. ADULTS 18+

8. AGE, GENDER & RACE ARE KEY
DIFFERENTIATORS OF POLITICAL
PARTY AFFILIATION
8
75
90
109
90
64
150
110
88
126
182
138
110
90 94
109
Millennials GenXers Boomers+ Women-Owned Minority-Owned
Republicans Democrats Undecideds
Index Vs. Total
SMB Owners
(=100)
Profile Characteristics of Political Affiliation
Indexed Versus Total SMBs
274,875
Estimated # of
Businesses: 996,421 2.13M 1.06M 377,953
Source for number of businesses: Small Business Research Center, based on Census and Bureau of Labor Statistics data for businesses with 5-499 employees; Q4 2015 projection

9. REPUBLICANS HAVE THE GREATEST
WEALTH & RUN THE MOST WELL
ESTABLISHED COMPANIES
9
Index Vs. Total
SMBs
72% men 106
28% women 88
$198K household income (average) 107
$1.7M net worth (average) 113
84% married 114
66% college graduates+ 97
$9.6M annual sales (average) 113
31.9 years in operation (average) 112
11% under 10 years in operation 73
24 employees (average) 96

10. DEMOCRATS INCLUDE THE MOST
COLLEGE GRADS & RUN THE
YOUNGEST COMPANIES
10
Index Vs. Total
SMBs
57% men 84
43% women 134
$170K household income (average) 92
$1.3M net worth (average) 87
62% married 84
76% college graduates+ 112
$8.5M annual sales (average) 100
25.2 years in operation (average) 89
21% under 10 years in operation 140
22 employees (average) 88

11. UNDECIDEDS HAVE THE LOWEST
SALES AND RUN YOUNGER COMPANIES
11
Index Vs. Total
SMBs
70% men 103
30% women 94
$176K household income (average) 95
$1.3M net worth (average) 87
68% married 92
67% college graduates+ 99
$6.7M annual sales (average) 79
25.5 years in operation (average) 90
19% under 10 years in operation 126
26 employees (average) 104
Undecided includes those who identify as Independent, or selected ‘Other’ or ‘None’

12. 12
THE ISSUES

13. ALL GENERATE LOCAL SALES; THUS
POLITICS & POLICIES THAT IMPACT
THE COMMUNITY ARE CRUCIAL
13
“Using 100 % points, how would you break down your company’s 2015 sales among the following three geographic categories? ...Within your local area, The
rest of the U.S., Outside of the U.S.”
92% 89% 92%
59%
64% 62%
23%
29%
24%
Republicans Democrats Undecideds
Local National International
Geographies Where Sales Are
Generated

14. DEMOCRATS AND REPUBLICANS BOTH
SPEAK OUT, BUT USE DIFFERENT
APPROACHES
14
150
136
110
113
90
79
84
136
90
100
105
108
110
111
113
114
Signed a petition
Been published
Made a speech
Written/called a politican
Served on committee/officer for local org
Attended public meeting on town/school affairs
Served on a Board
Active member of group influencing public policy/govt
Republicans
Democrats
Index Vs. Total SMB Owners
(=100)
“Which of the following public activities have you participated in over the past 12 months?”
Civic Activities Participated in Past Year
Indexed Vs. Total SMB Owners

15. REPUBLICANS ARE MORE CONCERNED
ABOUT ALL ISSUES RIGHT NOW
15
Republicans Democrats Undecideds
AVERAGE % ‘VERY CONCERNED’ ACROSS 17
BUSINESS & PERSONAL ISSUES
43% 34% 36%
“Let’s face it-you’re one of the people in your business who has to be concerned with ALL of the issues related to running the business. What are the issues
that you’re most concerned about?”
The seventeen issues include:
• The U.S. economy
• Having enough money to retire
• Keeping up with demands on your time
• Being able find and keep good employees
• The cost of health insurance and other employee
benefits
• Access to capital, business loans or credit
• Rising cost of doing business
• Spending enough time with my family
• Your own daily stress level
• The global economy
• Possible tax changes that could hurt your business
• Being able to attract new customers
• Maintaining existing customer base
• The outcome of the upcoming presidential election
• New competitive paradigms, such as the new shared
economy
• Inability to attract qualified, younger staff
• The world environment and global warming

16. REPUBLICANS ARE HIGHLY CONCERNED
ABOUT THE OUTCOME OF THE
UPCOMING PRESIDENTIAL ELECTION
16
“Let’s face it-you’re one of the people in your business who has to be concerned with ALL of the issues related to running the business. What are the
issues that you’re most concerned about?”
31%
42%
31%
51%
21%
30%
Republicans Democrats Undecideds
Concern About the Outcome of the Upcoming
Presidential Election on Your Business
82%
63% 61%
Very Concerned
Somewhat
Concerned

17. DEMOCRATS ARE SUBSTANTIALLY MORE
CONFIDENT IN THE U.S. ECONOMY THAN
REPUBLICANS
17
23%
35%
14%
29%
7%
12%
Republicans Democrats
Confident
Very Confident
Extremely Confident
“What is your level of confidence that the U.S. economy will continue to improve over the next 24 months?”
Confidence in the Improvement of U.S. Economy
Over the Next 24 Months
76%
44%
+32%
points

18. DEMOCRATS’ GREATER ECONOMIC
CONFIDENCE TRANSLATES INTO MORE
PLANNED FULL-TIME HIRES
18“Approximately how many full-time employees are you planning to hire over the next 12 months?”
Plan to Hire Full-Time Employees Next 12 Months
83%
73%
78%
Democrats Republicans Undecideds
Average Number
Estimated to be Hired: 3.3 employees3.8 employees 4.5 employees

19. REPUBLICANS ARE FOCUSED ON THE
ECONOMY, TAXES & RISING COSTS;
DEMOCRATS, ON CUSTOMERS & RETIREMENT
19
Republicans Democrats Undecideds
The cost of health insurance and other employee benefits 1 3 1
The U.S. economy 2 8 6
Rising cost of doing business 3 7 2
Being able to attract new customers 4 1 4
Possible tax changes that could hurt your business 5 10 7
Maintaining existing customer base 5 4 4
Being able to find and keep good employees 7 4 2
Having enough money to retire 8 2 8
Top Five Concerns of SMB Owners Across Political Affiliations
Rank Ordered by % Very Concerned
“Let’s face it-you’re one of the people in your business who has to be concerned with ALL of the issues related to running the business. What are the
issues that you’re most concerned about?”

20. 20
CONCLUSIONS

21. KEY DIFFERENTIATORS
21
Demographics Firmographics Issues
Republicans
• Skew older & male
• Have the highest net
worth
• More likely to be
married
• Run the most established
companies (avg. 32
years in operation)
• Highest annual sales
• Highest degree of concern across all
business issues.
• Especially high degree of concern about the
Presidential election.
• Least confident about potential
improvement of the U.S. economy.
• Top concerns: cost of health insurance, U.S.
economy, rising costs, possible tax
changes.
• Most impacted by skills shortage.
Democrats
• Skew younger
• Highest share of
college grads
• Most equitable share
of male and female
owners
• Highest share of Women
and Minority owned
businesses
• Younger companies
(21% in operation under
10 years)
• High confidence in future success of the
U.S. economy.
• Top concerns: Attracting new customers,
having enough money for retirement.
• Strong views about the role of business as
regards the environment, sustainability, and
social responsibility.
Undecideds
• Skew younger &
male
• Younger companies
(19% in operation under
10 years)
• Moderate confidence in future success of
the U.S. economy.
• Moderate concern about the outcome of the
Presidential election.
• Top concerns: Cost of health insurance,
rising costs, being able find/keep
employees.

22. DEMOGRAPHIC/FIRMOGRAPHIC
COMPARISON
22
Republicans Democrats Undecideds Total SMBs
Male / Female 72% / 28% 57% / 43% 70% / 30% 68%/32%
Average Household Income $198K $170K $176K $185K
Average Net Worth $1.7M $1.3M $1.6M $1.5M
Average Age
- Millennials
- Gen X
- Boomers or older
54.1
6%
27
67
51.7
12%
33
55
51.8
11%
33
56
52.8
8%
30
62
Married / Single 84% / 16% 62% / 38% 68% / 32% 74% / 23%
College Graduate + 66% 76% 67% 68%
Average annual sales $9.6M $8.5M $6.7M $8.5M
Average years in operation
% in operation under 10 years
31.9
11%
25.2
21%
25.5
19%
28.5
15%
Average # employees 24 22 26 25
Women-owned business
Minority-owned business
28%
7
39%
20
29%
12
31%
11%

23. Research:
Jessie Shaw
212-500-0611
jessieshaw@bizjournals.com
CONTACTS
23
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704-973-1839
rwhittington@bizjournals.com
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