Hiring Plans on the Rise but Finding the Right Staff is the Biggest Challenge to Growth Since Recession, Says American Expres...
April 27 2016 - 9:30AM
Business Wire
More Entrepreneurs are Concerned about Saving
for Retirement
As small business owners’ optimism (64%) and plans for growth
(75%) remain steady, their hiring plans have increased from a year
ago, according to the 2016 American Express OPEN (NYSE:AXP) Small
Business Monitor. The annual survey found that nearly four-in-ten
(39%, up from 34% last year) small business owners plan to hire
staff over the next six months, signifying a return to
pre-recession hiring intentions. However, for the first time since
2007, finding the right staff has emerged as the number one
challenge to growth (19%).
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20160427005213/en/
The 2016 American Express OPEN Small
Business Monitor found that nearly four-in-ten (39%, up from 34%
last year) small business owners plan to hire staff over the next
six months, signifying a return to pre-recession hiring intentions.
(Graphic: Business Wire)
As entrepreneurs look to meet their staffing needs, part-time
workers are the most sought after employees. Over the next six
months, 16% of small businesses plan to hire part-time employees,
13% plan to hire full-time employees and 11% plan to hire a
combination of both full and part-time employeesi.
“We are seeing a renewed focus on hiring, as businesses manage
by the mantra of ‘you are only as good as your people,” said Susan
Sobbott, president, Global Commercial Payments, American Express.
“However, it is also apparent many small businesses are
encountering difficulties finding the right talent, which is
ultimately proving to be a significant challenge to their
growth.”
While the majority of small business owners identify themselves
as optimists and “see the glass as half full” (84%), retirement
concerns are on the rise. Although business owners believe they
will need $30,000 less, on average, to retire than estimated last
year, a greater number (53% up from 47% last year) are worried
about their ability to save for retirement.
Women Small Business Owners Earning Less than Men
The number of small business owners who pay themselves a salary
is down year over year (51% vs. 57% last spring). However for
entrepreneurs who are taking a salary, they are paying themselves
$76,010, an increase of $2,310 from last year. Male business owners
are more likely to pay themselves a salary compared to women
business owners (57% of men vs. 42% of women) and on average they
pay themselves $17,470 more than women.
Growth Plans Remain Steady but Capital Investment Plans
Decline
Although business owners are slightly more confident in their
ability to access capital needed to grow their businesses (83% vs.
80% last year) and concerns around cash flow are down (36%, vs.45%
last year), plans to make capital investments over the next six
months are declining (51%, down from 56% last year). Additionally,
while three-quarters of business owners plan to grow their
business, steady year over year (75%, vs. 76% last year), growth is
not their main concern. The top priority for business owners over
the next six months is maintaining their current business and
sources of revenue (39%). To support their goal, business owners
say they will place a heightened focus on better servicing
customers to set their business apart from competitors (84%).
Economy Will Influence November Vote
Although nearly two-thirds of entrepreneurs (64%) have a
positive outlook on the economy and their own business prospects
over the next six months, the economy is the issue that will most
influence their vote in the November presidential elections (32%),
followed at a distance by tax policy and healthcare (each 16%), and
immigration (6%).
Additional survey results including findings by gender, industry
and geography are available by contacting Alex Della Rocca at
212-539-3203 or alexd@mbooth.com.
Survey Methodology
American Express OPEN Small Business Monitor, conducted since
2002, is based on a nationally representative sample of 739 U.S.
small business owners/managers of companies with fewer than 100
employees. The anonymous survey was conducted via telephone by
Ebiquity March 1-21, 2016. The poll has a margin of error of +/-
3.6% at the 95% level of confidence.
About American Express OPEN
American Express OPEN is a leading payment card issuer for small
businesses in the United States and supports business owners and
entrepreneurs with products and services to help them run and grow
their businesses. This includes business charge and credit cards
that deliver purchasing power, flexibility, rewards, savings on
business services from an expanded lineup of partners and online
tools and services designed to help improve profitability. Learn
more at www.OPEN.com and connect with us at openforum.com and
twitter.com/openforum.
i Due to rounding of hiring plans “full-time only, part-time
only, both” the added percent does not match the total who plan to
hire (39%).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160427005213/en/
M BoothAlex Della Rocca212-539-3203Alexd@mbooth.comorAmerican ExpressHeather
Norton212-640-0496Heather.A.Norton@aexp.com
American Express (NYSE:AXP)
Historical Stock Chart
From Mar 2024 to Apr 2024
American Express (NYSE:AXP)
Historical Stock Chart
From Apr 2023 to Apr 2024