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5 issues facing small businesses in 2013

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Owners will encounter some of the same problems they had in 2012.

Associated Press | December 31, 2012

In 2013, small business owners will contend with many of the same issues that made it hard to run their companies over the last 12 months.

They're also heading into next year with a lot of uncertainty. It's unlikely that negotiations in Congress will resolve all of lawmakers' disagreements over tax and budget issues that affect small businesses. And there are still many questions about the implications of the health care law for small companies.

That points to continued caution – and perhaps slow hiring – among the nation's small companies.
"Uncertainty is the bane of every small business," says Scott Shane, a professor of entrepreneurship at Case Western Reserve University's Weatherhead School of Management in Cleveland. "Their only rational response is to pull in their horns and slow down."

Small businesses aren't likely to get much encouragement from the economy. It's expected to grow by no more than 3 percent in 2013, according to the Federal Reserve. That's a moderate pace, better than the 1.7 percent that the economy grew during the first three quarters of 2012. But it's also far from robust

For a look at some of the issues facing small businesses in the coming year, click here.

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