Confidence up, but Small Business Owners Still Hiring Fewer Employees
Once bitten twice shy seems to be the theme for small business owners this year, as The Hartford’s 2014 Small Business Success Study shows that they remain conservative and cautious of hiring new employees since the economic downturn of 2008.
Yahoo Finance reported in a recent post that despite the economic growth and resulting financial rebound of their businesses, owners continue to operate as if we are still in a recession.
“More than half (55 percent) say they are more financially conservative in how they are operating their businesses today because of the recession,” the article says.
Hesitant to hire
One of the ways small business owners are holding back is in hiring. Although they support the minimum wage increase, most small business owners have not hired in the last year. “When asked what they would do if they had $100,000 to invest in their business, only 8 percent said they would hire full-time employees.”
They also are reluctant to borrow money, and are choosing to fund their businesses with personal savings or investments from friends and family rather than resorting to loans.
“Millennial small business owners are significantly more likely to have used personal sources of funding over the past year (60 percent) than older generations, Gen X (34 percent) or Boomers (33 percent),” the article states.
Confidence is needed
The data comes from The Hartford, who conducted telephone surveys targeting business owners throughout the US towards the end of 2014. The CEO of The Hartford stated that it is important that small businesses recover their confidence so they can feel comfortable taking risks again, which are essential to small business growth.
To read the original article in its entirety, please visit Yahoo Finance.