Study finds 41% of small businesses plan to hire in next 6 months
About 41% of small businesses plan to hire in the next six months, more than the 38% that don't plan to add jobs, according to a study released Tuesday by Pepperdine University.
The 7,502 small businesses surveyed as part of Pepperdine Private Capital Markets Project also ranked economic uncertainty as the top issue facing their sector. About 38% cited that as the biggest problem, followed by access to capital (26%) and government regulations and taxes (24%).
Uncertainty was evident in the findings as 21.2% of the small businesses said they didn't know if they would hire over the next six months.
“Small businesses should be a top consideration as the president and other legislators seek to jump-start job creation,” said John Paglia, an associate finance professor at Pepperdine’s Graziadio School of Business and Management and the lead researcher for the project. “Establishing market confidence, improving access to capital and improving regulatory and tax structures are the most direct route to end the Great Recession and spark the Great Recovery.”
The survey defined small businesses as those with annual revenue of less than $5 million. With President Obama set to give a major jobs speech Thursday, the owners of those small businesses ranked increasing access to capital as the best thing policymakers could do to spur more job creation next year.
About 35% of small businesses placed that as the top priority, followed by tax incentives (23%) and regulatory reform (18%).
-- Jim Puzzanghera
Photo: Harold Ingram, owner of Hisam's clothing and gift shop on Degnan Boulevard in the Village at Leimert Park, in front of his store in April. Credit: Mel Melcon/Los Angeles Times