On Nov. 8, 2016, citizens across the country will flock to polling stations to cast their votes for the 45th President of the United States. Until then, however, you can expect to hear a number of candidates offer their views on a plethora of political issues over the next year, including small business.
As a battleground for political debate and its importance to economic success, small businesses can have a tremendous impact on the upcoming election, and those to follow. Gaining insight into the small business community is more important than ever and critical to understanding their needs and helping them grow.
As part of its latest analysis on small businesses, Experian examined the financial and demographic characteristics of small-business owners by political affiliation. The research found that Republicans made up the largest percentage of the small business owner population at approximately 35 percent. They were followed by Democrats at 29.4 percent and Independents at 15.8 percent.
Findings from the study also showed that small-business owners who identify as Independent may have the most education experience. More than 73 percent of Independents have some college experience, and 45 percent have earned a bachelor’s degree. Comparatively, 72.3 percent of small-business owners who identify as Republican have some college experience and 44.1 percent have earned a bachelor’s degree, while Democrats account for 66 percent and 39.3 percent, respectively.
When it comes to the credit and payment behavior of these small-business owners, the research found that Republicans have the highest average business loan balances and the second-highest consumer loan balances at $9,823 and $193,483, respectively. Democrats fell on the other end of the spectrum with the lowest average business ($7,540) and consumer ($172,653) loan balances. Furthermore, Republican small-business owners demonstrated good payment behavior, with the lowest delinquency rates (91-plus days) for commercial and consumer credit cards at 0.98 percent and 5.8 percent, respectively.
For a more in-depth look into the characteristics of small-business owners by political affiliation, register for our Webinar that will take place on Jan. 20, 2016 at 1 p.m. Eastern time.
Painting a clearer picture of the small business community, enables government officials, lenders and business professionals to better understand the ins and outs of small-business owners, and gain insight into what matters most to them. Small businesses are the backbone of our economy and fixtures in the local community. By addressing the needs of small businesses, and setting them up for success, our economy and society can continue to prosper.