61% of Small Businesses Say PRO Act Will Destroy Their Business


What is in the PRO code that is bad for small businesses?

Now we know. Alignable conducted an extensive survey, and obtained responses from 11,606 participants. The majority – 61% – of respondents expressed their fear of the impact of the PRO legislation legislation on small businesses.

Eric Groves, of Alignable Co – founder and CEO of Alignable tells us. “And we’re not dramatic. We have collected data and shed light on the impact this law can have on millions of small business owners.”



Nearly two-thirds of the concern is about the impact of the PRO Act on small businesses

Currently, PRO is awaiting Senate action. The Biden administration recently indicated that the PRO Act could become part of its proposed $ 2.3 trillion infrastructure bill.

In short, it does two things that could seriously affect small business owners, especially very small businesses and lone entrepreneurs.

  1. The PRO Act is a pro-union legislation. “PRO” stands for Right to Organize Protection. The PRO bill was passed by the House of Representatives last month and is pending in the Senate.
  2. The PRO Law requires companies to employ multiple independent contractors as employees of W-2. He will follow what is called ABC’s guidelines to identify independent contractors.

Groves tells us that if the bill passes, it could have a devastating effect on those companies, freelancers and entrepreneurs.

To find out more about our survey of the impact of PRO on small businesses, we asked Groves to break down some of the findings. He says nearly half of small businesses will refuse to take on more work right away if they cannot use freelance workers due to the rules in the PRO Act.

“Based on responses to our survey, 40% of business owners indicated that they would need to turn down work related to projects or sales that require freelancers to complete,” Groves says. This net result will be small businesses losing revenue. In fact, 45% of business owners told us that this business loss could shut down their company. “

The Impact of PRO Law on the Self-Employed

He says that self-employed are afraid of losing, in extreme circumstances, 76% of their jobs.

And the freelancers are the ones forgotten in the debate about PRO. Proponents now focus on the labor organizing arm of the legislation.

“Our policymakers and political influencers need to realize that if thousands of freelancers vehemently oppose legislation alongside the American Chamber of Commerce, they need to delve deeper into understanding what they are proposing and all of its potential impact,” Groves says.

Ready Meals from the Alignable Questionnaire on the PRO Act

Here are some additional key points from Alignable’s survey on PRO Code:

  • The majority (61%) of independent contractors expect to lose 76% or more of their business. (This is largely because only 17% of small business owners said they could hire freelancers as W-2 employees.)
  • Given demographics, 67% of women-owned businesses will lose most of their business, and many say they are self-employed parents to accommodate children’s agendas. Veterans were alike with 65% reporting the same massive loss of revenue.
  • Almost half (45%) of all small businesses will be forced to close, as much depends on hiring freelancers to win business, manage costs and keep companies afloat.
  • Minority-owned businesses can also incur huge losses, with 62% saying they are “dynamically or heavily reliant” on the presence of side hustle to stay afloat.

Photo: Depositphotos




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