Why aren't small businesses hiring?

>>> president obama is warning congress the economy could be dealt a severe setback, if lawmakers don't take steps to avoid the sequester. that's when a series of steep automatic spending cuts go into effect.

>> the drawn out process for resolving the fiscal cliff hurt come confidence. the threat of massive automatic cuts have already started to affect business decisions.

>> a recent gallup poll shows more small businesses slashed jobs over the past year, and the outlook for the year ahead isn't exactly robust. i'm joined now by host of msnbc's your business, j.j. j.j. ramber. what is the small business climate?

>> i asked two people that exact question and i heard grim and cautiously optimistic. so what we're seeing -- and the gallup poll shows this, too, that people are intending on hiring more people, this year. the nfib is seeing that people are hiring a few more people now than they were last year. but it's very slow.

>> why? why is it not faster?

>> for all kinds of reasons. number one, there's no demand. so the economy does better and people start walking through your door, you have revenue, you're going to hire someone. no one's walking through your door, you don't need to hire someone, you don't have the money to do it. so it's the economy, just the gr greater economy. but people have cited health care costs, the cost of complying with regulation. but mostly, small business has helped as the economy has helped.

>> there are some businesses doing better than others. are there particular categories that are thriving?

>> if you go to silicon valley , it is an entirely different world. i mean, hiring there is up to pre-recession levels, internet boom levels. because of that, other sectors, not just tech, are doing well. because people have money. so places like construction is doing well there where it's not in other parts of the country.

>> that's part of this whole immigration debate because they're hiring so many skilled workers and how do we get the skilled workers that are needed to fill the demand.

>> the silicon valley is spearheading that entire debate.

>> ground zero for that. which are having difficulty?

>> construction, for small businesses . so when we got the jobs report, we saw construction jobs are increasing some. but for small businesses , it's still a little bit slower. it's still hard and they're not up to pre-recession levels. not even close.

>> we know it's all sort of a domino effect , so what are some of the other parts of the economy that have to do well for small business to start doing well?

>> the economy as a whole has to do well. there are a couple things to chemo, which is one, people aren't starting businesses in the same ways that they were before. and so that decreases small business hiring. those start-ups are the places new jobs are occurring. andy is changing. so small businesses don't need the same number of employees that they used to in the past. so those are changes -- i mean, hopefully we'll see more start-ups. the technology thing is only going to get worse, not better.

>> one of the interesting things as we've been following this story of hiring and small business in particular is how much women are driving some of these start-ups and how successful they have been.

>> it's incredible. though if you look at statistics, it's still harder for women to get money, investment money, than it is for men, but it is getting better. there are a lot of really high profile smart female business entrepreneurs that are doing great things right now.

>> so if we're going to be having this conversation again at the end of the year, is it very clear where we'll be in terms of small businesses ?

>> no, because it's not clear where we'll be in terms of the economy. there's so much uncertainty.

>> and it's in d.c. a lot of it's driven by d.c.

>> if you do not know what the economy is going to look like, you're not going to invest right now.

>> it's good to see you.

>> you, too.

>> used to seeing you on thursday when you do your business report. it's good to have you on "jansing and