Abstract:

The existing body of knowledge surrounding the impacts of minimum wage legislation suggests that minimum wage increases potentially can raise the standard of living for employees. Currently, little consensus exists among researchers related to the cause and effect of increasing minimum wage on inflation, business closures and job loss. Prior studies on the impacts of minimum wage have focused on large scale businesses like department and grocery stores or fast-food chains. This study focuses on small businesses to draw new conclusions with regard to how small businesses and their employees would be impacted by minimum wage legislation such as the Raise the Wage Act. Small business interest groups oppose the Raise the Wage Act in Congress, and collecting data from small business owners on how they perceive the minimum wage is essential to informed economic policy. Effects on employment are the major focus of this study, though the research is conducted through the point of view of small business owners. Future researchers can leverage this study’s findings as a beginning point for an in-depth investigation of minimum wage and its impacts on small business and employment. Numerous stakeholders exercise influence over minimum wage legislation, and this study addresses the specific impacts small business owners foresee to themselves and their businesses in the case of a minimum wage increase.