Small business owners say they need Washington regulators and legislators to get out of their way before they feel optimistic enough to start hiring, according to the results of the U.S. Chamber’s quarterly Small Business Outlook Survey released today.

With millions of Americans still out of work, it will take small business hiring to make a dent in the unemployment rate. Unfortunately, the survey of 1,332 small business owners—conducted from December 30, 2011 to January 6, 2012—indicated that two-thirds of small business owners have no plans to hire in 2012. Just 19% reported plans to hire, and 11% intend to reduce their workforce.

To gain the confidence to hire, small business owners say they need relief from heavy-handed Washington policymakers. Seventy-eight percent of respondents reported that taxation, regulation, and legislation from Washington make it harder for their businesses to hire more employees, while 74% said that the 2010 health care law specifically makes it harder to hire.

Complicating matters is the fact that small businesses don't know what federal policymakers will hit them with next. A full 86% would prefer more certainty from Washington.

This is a familiar chorus from the small business community, but one that deserves repeating until legislators and regulators get the message and take action. Robin Conner of R&R Conner Aviation in Montana says, “Washington needs to step out of our way and let free enterprise do what it does best—innovate and adapt to stimulate the economy and create jobs.”

A vast majority (85%) of respondents feel the country is on the wrong track, but attitudes about their local economy are marginally improving, up 12 percent over last year. It's a faint glimmer of hope on the local level, but overall the survey is a reaffirmation that there is a long road ahead before small businesses feel confident about the economy in a meaningful (read: hiring) way.