'Fiscal Cliff' could impact small businesses - KSFY News - Sioux Falls, SD News, Weather, Sports

'Fiscal Cliff' could impact small businesses as consumers have less discretionary income

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The threat of spending thousands more on taxes next year is not just a concern for American consumers—it also has many business owners thinking about what the New Year could mean for their business when their customers have less discretionary money to spend.  

There's just two day left until the New Year which means businesses are doing inventory and looking back on 2012. 

"We had so much fun. It went by so fast I can't even believe it. We really had a good time and business was good," said Child's Play Toys owner Nancy Savage. 

"2012 was the best year ever of all the 15 years we've been in business; I can honestly tell you we have been enjoying a very fruitful year," said Dick Murphy, owner of Murphy's Irish Gift Store in Downtown Sioux Falls. 

But just as the economy is starting pick up: 

"I feel like since I've opened, I've seen it just grow and grow and grow," said Savage. 

"I think people are confident that we're easing out of the recession right now," said Murphy. 

The Fiscal Cliff has some concerned there will be fewer dollars for consumers to put into the economy, which could send us right back to an economic downturn like the one we saw in 2008. 

"It's a legitimate concern... I wouldn't want us to retreat back to that, that's why I feel we really need to have our political leaders take the action that's needed to get it done," said Murphy. 

The uncertain economic future also means business owners and consumers may not have the time they need to adjust their budgets and their businesses accordingly. 

"It will tighten our budget up...we'll drive less...we'll go back to more ordinary groceries, we won't buy new clothes, we'll just cut back, you know, where ever we can," said South Dakota consumer B.J. Buckley. 

That means businesses will have to adjust as well. 

"You do react differently; if you're going to be smart and be here the next year, you have to think about what should I do differently?" said Murphy. 

But despite the economic changes, these small business owners are confident they'll still see plenty of customers in the New Year.

"People are going to continue to buy toys for their kids and you know, hopefully that won't change," said Savage. 

"We've been here 15 years and we've seen the ebb and flow of economic woes that have come our way," said Murphy. 

Despite the many economic fears in the looming Fiscal Cliff, many people we've heard from in the past few weeks also say it's nothing this country hasn't seen before and they're confident we will be able to get through any trials that may come.

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