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Majority CEOs Say Limited Access to Capital Not Holding Back Their Growth

Chief Executive magazine’s survey of 266 CEOs between November 5 and 21 revealed that more than half-59 percent-of CEOs don’t think limited access to capital is hurting their business.“Our polling suggests that many companies established their capital structures prior to the credit crisis that enable them to operate,” said Edward M. Kopko, CEO and publisher, …

Chief Executive magazine’s survey of 266 CEOs between November 5 and 21 revealed that more than half-59 percent-of CEOs don’t think limited access to capital is hurting their business.

“Our polling suggests that many companies established their capital structures prior to the credit crisis that enable them to operate,” said Edward M. Kopko, CEO and publisher, Chief Executive magazine.  “However, company sales and employment growth could be inhibited by many other factors.” 

As such, CEOs are still gloomy about the prospects of the U.S. economy and the impact new Administration will have on a potential recovery: A majority (59 percent) of CEOs responding to the Chief Executive survey say that moving past the election uncertainty will not help America recover from its economic struggles.

“In contrast to past elections, when most people assumed that once the uncertainty around presidential elections is settled, business will return to normal, this presidential election has resolved nothing in terms of turning to business as usual,” continues Kopko.

Furthermore, 46 percent of CEOs say that the Obama Administration’s policies are more likely to hurt the economy versus 34 percent who say they will help and 20 percent who say they will make no impact.

“Obama and the Democrats have no understanding or appreciation of the vital importance of smaller companies as job creators,” says one respondent, “Democratic tax policies will likely cause long-term damage to the U.S. economy and businesses,” continues another. 

On the other hand, several CEOs are willing to give the President-elect the benefit of the doubt. One respondent indicates, “My expectation is that Obama will select qualified people who will help to restore confidence.  While the prospect of higher taxes on high earners is daunting, the overall effect of new people and policies should be positive.” 

“As our survey shows, CEOs are unsure about whether President-elect Obama can turn the economy around. While some are hopeful, others have serious concerns, particularly because of his proposed tax policies enunciated during the campaign,” concludes Kopko.

CEO Index, November 2008
Respondents: 266

Is limited access to capital holding back the growth of your company?

Yes

40.8%

No

59.2%

How do you think President Elect Obama will affect America‘s economic recovery?

Hurt

45.7%%

No impact

20.3%

Help

34.0%

Do you think moving past the election uncertainty will help America recover from its economic struggles?

Yes

40.9%

No

59.1%

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