Why small business is worried about the government shutdown
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Small-business owners want the government back to work, according to a survey of nearly 1,500 of the Goldman Sachs 10,000 Small Businesses participants, shared exclusively with Axios.
Why it matters: Survey respondents are sounding the alarm to Washington, and perhaps to Wall Street, that the economic impact of the government shutdown is bigger than what lawmakers may currently be calculating.
What they're saying: For the 20% of small-business owner respondents to the survey who rely on government contracts, the duration of the shutdown is forcing them to pull back on spending to make payroll, including hiring, supplies and services.
- "I cannot have people not show up to work and I cannot not pay them," Jessica Johnson-Cope, president of Johnson Security Bureau, a security services company based in the Bronx, tells Axios.
- While waiting on payment from outstanding invoices with the federal government, Johnson-Cope paused hiring related to one contract that could have created "about 50 new jobs."
- That's significant in New York City, where fewer than 1,000 jobs were added in the first half of the year, according to the mayor's office.
By the numbers: 72% of respondents to the survey, which was conducted from Sept. 23 to Oct. 2, 2025, say it's important for their business that policymakers can agree on spending to keep the government open.
- When asked how a shutdown might impact them, 62% said customer demand would drop amid economic uncertainty and instability.
- 24% said revenue would drop because their customers are often government employees.
- 20% said they rely on federal agencies or contractors as part of their business.
- 18% said they depend on Small Business Administration services, including loans and support.
- 16% said they are federal contractors/subcontractors and expect revenue to be impacted.
The big picture: The shutdown is on day 20, already making it the third-longest in history.
- Historically, shutdowns don't impact markets much.
- But small businesses are the largest employers in the U.S.
