Nearly three-quarters, or 74 percent, say the new law is causing an impediment to job creation.
Brad Close, vice president of Public Policy for the National Federation of Independent Business, said: "What they know so far scares them; worries them very much."
Close said the businesses he represents are in favor of health care reform, but his clients ultimately could not support what President Obama has crafted.
"They look at this bill as more of a tax bill wrapped up and packaged as a health care reform bill," Close says, adding, "It really puts most of the cost and burden on small business owners."
Administration officials, including Health and Human Services Secretary Kathleen Sebelius, say small businesses will actually benefit from the new law.
"We have millions of small business owners that are taking advantage of the current tax credit, and I can tell you looking forward to a new market where they will have the same affordable coverage as their large competitors have," Sebelius said Thursday.
Close said those businesses are far from convinced. "I think if there had been great benefits when it was written you would have seen a groundswell of support from small businesses to pass this law, but, in fact, you saw the exact opposite."
Speaking at the Families USA Health Action Conference, Sebelius said there is a wealth of misinformation being spread about the law and predicted that the "attacks" will continue.
"In fact, I believe over the next few months we'll see the biggest barrage of attacks and misinformation about the law that we've ever seen." Sebelius also mentioned the upcoming legal fight set for March 26 to 28 at the Supreme Court, saying the law will be upheld and that businesses will then be able to move forward with that certainty.
NFIB is one of the plaintiffs challenging the law, and Close is feeling equally confident about victory.
Next up in the case, a brief from the administration on the issue of severability. The brief, due Jan. 27, will argue that even if the individual mandate is struck down the rest of the health care law can survive on its own.