A new report reveals that only 27% of small business owners plan to hire employees in the next six months. But the bleak outlook may come down to demographics and company size.
As the year-end quickly approaches, small business owners are looking ahead to 2013. Are new hires in their plans? Many reports--even Inc.'s very own--predict yes.
But according to a quarterly survey recently released by Capital One only 27% of small businesses polled expect to hire additional employees in the next six months.
“Our survey results for the third quarter indicate that…some concerns and uncertainty remain – and may even be elevating,” said Jon Witter, President of Small Business Banking at Capital One in a statement.
As it turns out, the reportedly low hiring prospects may come down to a matter of demographics: Of 1,901 interviews Capital One conducted between September 21 and October 5, 300 were conducted in only five states or districts: New Jersey, Louisiana, Texas, New York and Washington D.C. Individuals interviewed came from companies reporting under $10 million in annual revenue.
When Bank of America commissioned a similar study using a nationally representative sample of 1,003 small business owners with annual revenues between $100,000 to $4,999,999, 31% reported that they planned to add employees in 2013, while only 3% expected to decrease their company headcount. What’s more, the survey polled small business owners over a similar period as Capital One’s report: September 9 to October 7.
Earlier this year, Inc. put the hiring question to another group of entrepreneurs: The 100 Hire Power CEOs, some of whom count company revenues in the hundreds of millions. What did they have to say?
A whopping 92% of Hire Power CEOs responded that they plan to hire more employees in 2013.